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the Nasdaq composite (NASDAQINDEX: ^ COMP) regained its leadership role in the stock market, leading bullish investors up to an all-time high. Even with many lingering doubts about the COVID-19 pandemic and its long-term impact on the U.S. economy, market players have been unwilling to let harsh reality hamper their hopes and dreams. The composite rose 1% to surpass its previous record by around 20 points, while the Nasdaq-100 had a slightly larger percentage increase.
Two major stocks drove the Nasdaq higher. NVIDIA (NASDAQ: NVDA) has gained notoriety in the semiconductor industry, and its graphics chip products in particular have attracted a loyal following. Meanwhile, You’re here (NASDAQ: TSLA) continued to rise as investors brace for its 5-for-1 stock split at the end of the month. In both cases, favorable comments from professionals on Wall Street gave stocks a boost.
A nice image from NVIDIA
NVIDIA shares climbed 7% on Monday, easily surpassing their previous record. The graphics chip maker has earned the seal of approval not from one but two different analyst firms.
Image source: Getty Images.
The two opinions in question came from Susquehanna and Oppenheimer. For Susquehanna, a $ 90 per share increase to the price target at $ 540 reflected analysts’ belief that the new version of advanced graphics processing units for video game fans will be very successful. It could help NVIDIA avoid all competition on the data center front, especially with its competitors. Advanced micro-systems play in the sector. Oppenheimer raised its target price to $ 500 per share by $ 100, using much the same theory that any data center slowness should be offset by the strength of video games.
The pandemic has accelerated the transition to digitization across the economy, which has created near-term favorable winds for NVIDIA and its peers. Whether the impact will be lasting and lasting is less certain, but at least today the bulls have remained completely in control.
Tesla upstairs
Meanwhile, Tesla’s shares hit new highs, climbing 11%. The electric automaker has already garnered a lot of attention, but analysts weighed in today and continued to fuel the momentum.
Specifically, Wedbush analysts strengthened their view on the stock, giving their price target a $ 100 increase to $ 1,900 per share. Wedbush has focused on China, where it appears Tesla is taking advantage of its new Shanghai-based production facility. Additionally, it looks like pent-up demand for Tesla vehicles could actually help the company meet its target of delivering 500,000 vehicles for the whole year, even if the first half numbers were below that pace.
Interestingly, Tesla also received less than perfect news from China. Registrations of vehicles built in China in July fell to 11,456, from 14,976 in June. On the other hand, the competitor NIO saw a sharp increase in registered vehicles.
Nonetheless, Tesla has many catalysts for further gains, including the completion of the stock split and the planned addition of the stock to the. S&P 500. This is largely what analysts are looking for as they continually raise their price targets.
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