Stock Story -
What Happened: Shares of leading designer of graphics chips Nvidia (NASDAQ:NVDA) jumped 5.1% in the morning session after Goldman Sachs (NYSE:GS) analyst Toshiya Hari raised the price target on the company's stock from $625 to $800, and maintained a Buy rating. The price target represents a potential 16% upside from where shares traded when the update was announced. The analyst added "We believe Nvidia will remain as the industry gold standard for the foreseeable future, given its robust hardware and software offerings and, importantly, the pace at which it continues to innovate." After the initial pop the shares cooled down to $689.21, up 4.2% from previous close.
Is now the time to buy Nvidia? Find out by reading the original article on StockStory.
What is the market telling us: Nvidia's shares are very volatile and over the last year have had 10 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 28 days ago, when the company gained 5.1% after Reuters reported that four Chinese electric vehicle brands, Li Auto (NASDAQ:LI), Great Wall (HK:2333) Motor, Zeekr, and Xiaomi's new EV (electric vehicle) unit, will use Nvidia's DRIVE technology for their automated driving systems.
The Nvidia DRIVE platform is a collection of technologies developed by Nvidia for autonomous driving and advanced driver-assistance systems (ADAS). It includes hardware and software components designed to enable vehicles to perceive and respond to their environment, ultimately achieving higher levels of automation.
Given the potential in the booming Chinese EV market, this update hints at possible new growth opportunities for Nvidia in the region.
Nvidia is up 43% since the beginning of the year. Investors who bought $1,000 worth of Nvidia's shares 5 years ago would now be looking at an investment worth $18,377.
![Why Nvidia (NVDA) Stock Is Up Today](https://d68-invdn-com.investing.com/content/picea4a11e9e92c1ee0565d8ac9d8db834a.jpeg)