Latest news with #Rakers
Business Insider
12-08-2025
- Business
- Business Insider
Wells Fargo Lifts Nvidia Price Target to $220 on China AI Chip Deal
Nvidia Corp (NVDA) could see more gains in the months ahead, according to a new note from Wells Fargo's top analyst, Aaron Rakers. The bank raised its price target on the stock to $220 from $185 and kept its overweight rating. The latest target points to about 20% potential upside from Friday's close. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Nvidia shares have climbed over 48% over the past three months and are up 36% since the start of the year, with the much-anticipated Q2 2026 earnings call expected on August 27. China Deal and Global Trade Trends Signal Revenue Boost The move comes after the Financial Times reported that Nvidia and Advanced Micro Devices (AMD) reached an agreement with the U.S. government. The deal will allow both companies to resume selling certain artificial intelligence chips in China in exchange for giving the government 15% of the revenue from those sales. For Nvidia, the chips in focus are its H20 models, while for AMD, the models are MI308 chips. Rakers said the new arrangement could help Nvidia recover the full $8 billion in quarterly revenue that was at risk from the earlier China restrictions. The analyst expects this recovery to be complete by the company's fiscal fourth quarter in January 2026. He also sees demand from China growing further after that point. In addition, Rakers pointed to recent trade data that supports a stronger outlook for the sector. U.S. imports of automated data processing machines rose in June, while Taiwanese exports of the same category rose in July. These trends often align with higher demand for servers and related technology used in artificial intelligence. To conclude, Wells Fargo believes the combination of renewed China sales and strong global demand could help push the stock toward its higher target. Meanwhile, Bernstein's five-star analyst Stacy Rasgon maintained a Buy rating on Nvidia today and set a price target of $185.00. Is NVDA Stock a Buy? average NVDA stock price target of $186.24. This implies a 1.94% upside from the current price.
CNBC
11-08-2025
- Business
- CNBC
Nvidia will jump another 20% after report of China export license agreement, Wells Fargo says
A couple of catalysts could propel shares of Nvidia higher in the coming months, according to Wells Fargo. As investors gear up for the artificial intelligence's earnings after the bell Aug. 27, the firm increased its price target to $220 from $185 and reiterated an overweight rating on the stock. The firm's updated target implies 20.4% upside potential from Friday's close. This comes after The Financial Times reported that Nvidia and Advanced Micro Devices agreed to give the federal government a 15% share of their revenue from selling certain chips in China — namely Nvidia's H20 chips and AMD's MI308 chips. The agreement allows the two companies to receive export licenses to sell those chips. "We would assume NVDA can recapture the full $8B/qtr revenue impact the H20 China ban was expected to have on the F2Q26 (July) qtr by F4Q26 (Jan)," analyst Aaron Rakers wrote in a note on Monday. "We would expect China demand to grow from the $8B/qtr level going forward." Along with the report of approved licenses to resume H20 chip sales in China, Rakers pointed to strength in U.S. imports of automated data processing (ADP) machines in June and Taiwanese exports of ADP machines in July "We see our analysis of highly correlated macro data points coupled w/ strong rptd + guided hyperscale capex trends as supporting solid upside," the analyst wrote. "We also appreciate that there has been increasing upside bogey sentiment into upcoming (8/27) F2Q26 print." NVDA 3M mountain NVDA, 3-month Shares of Nvidia were nearly 1% lower in the premarket Monday. Overall, the stock has had a solid year, outperforming the broader market with a 56% gain in the last three months and a 36% rise year to date.
CNBC
08-08-2025
- Business
- CNBC
Why Tesla's latest move could be a boon for Nvidia, AMD
The end of Tesla 's own AI supercomputer efforts — where it was developing its own chips — means Elon Musk's company will become an even bigger customer for major chipmakers, according to Wells Fargo. Analyst Aaron Rakers highlighted Nvidia and Advanced Micro Devices as beneficiaries of Tesla's decision to shut down its custom-built AI training supercomputer Dojo team, which was first reported by Bloomberg on Thursday. Pete Bannon, Tesla hardware design engineering vice president, is leaving the company after joining from Apple in 2016, CNBC confirmed. Remaining employees are being reassigned to Tesla, Bloomberg's report said, citing people familiar with the matter. Dojo's end is "an indication that the company is stepping back from its internal AI-optimized silicon efforts," said Rakers. "This should be viewed as a positive for NVIDIA and AMD as this likely increases Tesla usage of general purpose GPUs for AI." Rakers highlighted that Tesla has been notably expanding its graphics processing units (GPU) infrastructure. Tesla has bought several thousands of Nvidia GPUs such as the H100, in an effort to scale its training compute power. "During the 2Q25 earnings call, Tesla disclosed that the company has deployed a ~50k NVIDIA H100 training cluster Cortex. The same week Elon Musk posted that Tesla was deploying an add'l 16k NVIDIA H200 GPUs at its Texas Gigafactory; running at ~67k NVIDIA H100 equivalents," Rakers said. Musk said in early 2024 that while a Dojo supercomputer would cost $500 million to build, "Tesla will spend more than that on Nvidia hardware this year." Nvidia GPUs were being used for Tesla's other efforts beyond Dojo, such as training and inference of its Grok AI chatbot. TSLA 1Y mountain Tesla stock performance over the past year. The analyst acknowledged that the Bloomberg report is markedly different from Musk's comments during Tesla's second-quarter earnings call, during which he said that the Dojo 2 supercomputer is expected to operate at scale next year and that the Dojo 3 and the Ai6 inference chip would find convergence, meaning they would integrate in some way and be the same chip. Tesla's custom-designed Ai6 AI chip was intended for in-vehicle inference for Tesla's Full Self-Driving system. The Dojo supercomputer was designed to train AI models on data captured by Tesla vehicles, and has been part of Musk's heavy emphasis to investors over the last year that Tesla is an artificial intelligence and robotics company, not just an electric vehicle company. Tesla shares edged slightly lower before Friday's market open. The stock is down about 20% year to date.
CNBC
16-07-2025
- Business
- CNBC
Wells Fargo raises AMD price target ahead of earnings, sees a nearly 20% gain for the stock
Advanced Micro Devices is a buy ahead of its upcoming earnings report and has room to grow in the next few months, Wells Fargo said on Wednesday. Analyst Aaron Rakers reiterated his overweight rating on the name and increased his price target to $185 from $120. That reflects 18.9% upside from Tuesday's close. "We think AMD will point to confidence in the trajectory to y/y AMD's datacenter GPU growth into 2H25," Rakers wrote in a Wednesday note, adding that such growth will be driven by the ramp up of MI355X chips , which began shipping last month. The analyst's forecast comes as the stock has surged more than 76% in the past three months, far surpassing the S & P 500's three-month gain of more than 18%. It's also risen more than 31% in the past six months. AMD 3M mountain AMD, 3-month Along with the company's datacenter growth trajectory, Rakers also anticipates that it'll highlight its roadmap execution, particularly when it comes to its fifth generation Epyc processors dubbed Turin. "We expect AMD results to highlight the company's position as a continued share gainer in server [central processing units] with a materializing ramp of Turin Zen 5-based EPYC CPUs + continued adoption of the Zen 4-based Genoa / Bergamo EPYC CPUs," the analyst also said. "We remain confident in AMD's strong roadmap execution," he continued, saying there should appear to be "ample room for enterprise driven growth." AMD is set to report earnings Aug. 5 after the bell. Rakers' bullish call is among the 37 total analysts that have a strong buy or buy-equivalent rating on the name, according to LSEG. Fifteen other analysts have stepped to the sidelines with a hold rating on the name. However, AMD has an average target of nearly $138, implying more than 11% downside potential.
Yahoo
23-05-2025
- Business
- Yahoo
NVIDIA (NVDA)'s NVLink Tech in Focus, Price Target Set at $185
We recently published a list of . In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks that are making waves this week. NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services. On May 21, Wells Fargo analyst Aaron Rakers reiterated an 'Overweight' rating on the stock with a $185.00 price target. Rakers noted that Nvidia's NVLink Technology has growing potential, particularly after the launch of NVLink Fusion. The technology allows third-party custom silicon and CPUs to integrate NVIDIA's memory-coherent NVLink for chip-to-chip interconnect. While some industry reports do suggest that this CPU connectivity isn't something novel, Rakers stressed the role of NVLink interconnect in AI infrastructure. A close-up of a colorful high-end graphics card being plugged in to a gaming computer. NVIDIA's NVLink interconnect offers significant bandwidth advantages over the standard PCIe. In particular, the NVLink version 6, anticipated to be launched in the second half of 2026, is expected to double the bandwidth to 3.6TB/s with Rubin R200 GPUs. Rakers also highlighted how Nvidia is enhancing its competitive edge through its move to externalize NVLink. It is doing so by enabling its Grace and Vera CPUs to connect with custom accelerators and CPUs. Initial partners for the venture include Marvell, Alchip, MediaTek, and Astera Labs, with Synopsys and Cadence. Overall, NVDA ranks 2nd on our list of AI stocks that are making waves this week. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
