Wall Street Analysts Are Optimistic on Artificial Intelligence (AI): Predictions for 2024
Artificial intelligence (AI) is becoming an integral part of the modern world, and financial investors on Wall Street are increasingly optimistic about companies that are involved in the development and application of this technology. One such company that is attracting special attention from investors is Nvidia (NVDA). Recently, Goldman Sachs raised its target price for Nvidia shares from $625 to $800, signaling the market about the growth prospects of this company.
Nvidia shares rose by 4.8% yesterday in response to the news of the target price increase by Goldman Sachs. This growth also influenced other companies in the computer technology sector, including Super Micro Computer (SMCI), whose shares jumped by 14.4%. This indicates that optimism regarding the development of AI extends to other companies in this industry.
However, despite the positive growth prospects, some analysts express concerns about a possible correction in the market. Nvidia’s market capitalization has increased by 5.7 times over the past year and a half, and Super Micro’s even by 12 times. This is significant growth that may attract investor attention while also raising concerns about possible overvaluation of stocks.
Nevertheless, many analysts believe that the growth prospects for companies involved in the development and application of AI remain very high. For example, Nvidia continues to actively develop and improve its products and technologies in the field of graphics processors and machine learning, allowing it to maintain a leading position in the market. Companies like Super Micro are also actively implementing new technologies in the field of computer technology, making them attractive to investors interested in the growth of the AI sector.
Thus, technological stocks related to the development and application of artificial intelligence remain in the spotlight of investors on Wall Street. Despite concerns about a possible correction, the growth prospects for these companies continue to remain high due to ongoing technological advancements and increasing demand for products and services based on artificial intelligence.