Analysts Praise Outperforming Chip Stock

NVDA is up 191% since the start of 2023

Laura McCandless

Deputy Editor

Jul 11, 2023 at 10:51 AM

NVDA

Semiconductor stock Nvidia Corp (NASDAQ:NVDA) is higher this morning after two lofty price-target hikes, one from Keybanc to $550 from $500, and another from Goldman Sachs to $495 from $440. Keybanc cited "robust demand" for artificial intelligence (AI) servers, and now sports one of the highest analyst price objectives on NVDA.

NVDA is hovering near its June 20 record high of $439.90, up an impressive 191% year-to-date. It's also worth noting that Nvidia stock is, historically, one of the best-performing stocks in the second half of the year, per data compiled by Schaeffer's Senior Quantitative Analyst Rocky White. Today, NVDA is up 1.2% to trade at $426.74.

Now could be a good time to weigh in on the stock's next move with options. NVDA is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 39%, which sits in the low 12th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at an 85 out of 100, meaning the chipmaker has exceeded option traders' volatility expectations during the past year.

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