NVIDIA Corporation (NVDA) is advancing 3% after Bank of America increased its price target on NVDA stock to $160 from $150. Additionally, the Trump administration officially announced that it would rescind some export restrictions imposed on AI chips by the Biden administration.
Schwab Network reported the news on May 14.
Why Bank of America Raised Its Price Target on NVIDIA Corporation (NVDA)
The bank noted that NVIDIA Corporation (NVDA) and AMD (AMD) had announced projects with HUMAIN, a subsidiary of the Saudi Arabia Public Investment Fund. Bank of America estimates that the combined annual value of the two companies’ projects with Humain will be $3 billion to $5 billion.
Additionally, by providing AI chips for foreign countries, NVIDIA Corporation (NVDA) can circumvent power shortfalls in the U.S. and compensate for restrictions on its shipment of such chips to China, the bank asserted.
Speaking of governmental restrictions on exporting AI chips, the Trump administration disclosed that it would rescind a rule issued by the Biden administration which curbed the export of AI chips to many countries. The Trump administration had previously indicated that it would terminate the rule, but the official announcement was made today.
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This article is originally published at Insider Monkey.
