Shares of Nvidia (NVDA) saw an increase of over 3% in intraday trading on Monday following the chipmaker’s announcement of its next-generation artificial intelligence (AI) chip. The company stated its intention to introduce a new line of semiconductors annually, prompting Bank of America to revise its price target for the stock.
As of 12:30 p.m. ET Monday, Nvidia’s shares were up 3.2% to $1,131.70, marking a significant increase since the beginning of the year. Stocks of Nvidia’s partners, including Micron Technology (MU), TSMC (TSM), and Arm (ARM), also experienced gains.
Nvidia Unveils Rubin Platform for 2026
Nvidia CEO Jensen Huang revealed plans for the Rubin platform, slated for release in 2026. This next-generation system will include new graphics processing units (GPUs), Arm-based central processing units (CPUs), and networking chips, continuing Nvidia’s strategy of annual product releases to match the rapid advancements in AI technology.
The Rubin platform follows the previously announced Blackwell, which analysts speculate may already be sold out into 2025 due to the escalating demand for AI technology.
Bank of America Raises Nvidia Price Target
Following the announcement of the Rubin platform, analysts at Bank of America increased their price target for Nvidia’s stock from $1,320 to $1,500. They cited “stronger growth opportunities ahead” fueled by potential long-term demand dynamics in gaming cycles and data center requirements.
The analysts expressed optimism about the semiconductor industry, particularly regarding AI advancements, suggesting that the peak of AI development is yet to come. They noted that major tech and cloud companies are still in the early stages of AI implementation, indicating sustained growth potential.
AMD Also Pursuing Annual Product Cycle
Advanced Micro Devices (AMD) provided further details about its AI chip plans, unveiling the MI350 family of chips expected to reach customers by 2025. AMD aims for an annual product release cycle, similar to Nvidia’s strategy.
AMD shares initially rose on the news but later declined, reflecting a broader market trend. As of 12:30 p.m. ET Monday, AMD shares were down 3.2% to $161.59, despite showing a notable increase since the beginning of the year.
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