Nvidia (NVDA 2.13%) stock posted significant gains in Monday's trading. The artificial intelligence (AI) leader's share price climbed 4.1% in the daily session, according to data from S&P Global Market Intelligence.
NASDAQ: NVDA
Key Data Points
Nvidia stock got a boost in today's trading as investors and analysts reassessed the impact of a potential delay for the first generation of the company's upcoming Blackwell processors. The company's share price likely also got a boost from news that the graphics processing unit (GPU) frontrunner had signed a new AI training deal with the state of California.
Nvidia continues to rack up public sector wins
Nvidia has been touting the importance of developing AI systems for countries. The company anticipates a dramatic ramping of public sector spending to develop artificial intelligence systems as countries aim to shore up national defense capabilities and overall sovereignty. The announcement of the new training partnership with California reflects a similar dynamic on a U.S.-state level. It wouldn't be surprising to see Nvidia announce additional AI training deals with other states in the near future.
Is Nvidia stock on track for more big gains?
UBS published a report on Nvidia today, maintaining a buy rating on the stock and a one-year price target of $150 per share. The artificial intelligence leader's stock has seen volatile trading recently as investors have weighed concerns about expectations that its first Blackwell processors will be delayed. With the company closing out today's daily session valued at roughly $109 per share, UBS' price target suggests near-term upside of roughly 38%.
The first releases in the Blackwell line are expected to deliver a substantial leap forward in processing power and were expected to be a major performance driver for Nvidia this year. In general, the market has also shown some skittishness lately when it comes to valuations for megacap companies and leading AI players. But the bank thinks the tech stock is undervalued at current prices.
UBS expects that a potential delay for the first Blackwell processors would still have them releasing by the end of January 2025, and the bank's analysts on the stock think overall demand for Nvidia's processors will remain very strong. While some analysts have projected that the AI leader's earnings will hit a near-term peak in 2025, UBS thinks profits will likely grow in 2026 as well.
