Chip stock Nvidia is set to become a new supplier for technology giant Microsoft, causing its shares to surge by nearly 4%. Nvidia, known for its AI chips, has been working with Microsoft to provide CPUs that will not only run Microsoft operating systems but also integrate Arm Holdings technology. This move comes as Microsoft aims to compete against Apple by building processors for Windows PCs. Additionally, Nvidia is rumored to be releasing a new GPU line, the RTX 4080 Super, which is expected to be a powerful device with 20 gigabytes of VRAM.
Analysts on Wall Street have a strong outlook for Nvidia, with a strong consensus rating and an average price target of $645.53 per share, implying a 50.18% upside potential. Nvidia’s expansion into supplying Microsoft and its upcoming product releases contribute to its positive market outlook.
In summary, Nvidia’s partnership with Microsoft as a new supplier, along with its rumored upcoming GPU line, has caused a boost in its stock. The company’s collaboration with Microsoft aligns with the latter’s strategy to compete against Apple in the PC processor market. Analysts have a positive outlook on Nvidia’s stock, predicting significant upside potential based on their price targets.
