Truist Securities emphasizes that artificial intelligence (AI) continues to be a growing trend, presenting attractive opportunities for investors. Analyst William Stein, in a recent update, reaffirmed his Buy ratings for Nvidia (NVDA) and Monolithic Power Systems (MPWR), along with his price targets of $668 for Nvidia and $600 for Monolithic Power.
Nvidia, renowned for its chips, is the preferred choice for most engineers involved in building AI systems. Particularly for training new models and addressing the majority of AI workloads, Nvidia stands out. Stein expresses confidence in the company’s ability to grow its data center revenue in the coming years due to the increasing demand for AI servers. With Nvidia highlighting the need to replace the $1 trillion worth of data center hardware every four years, Stein anticipates a significant portion of this infrastructure will be dedicated to supporting AI. Moreover, he believes that Nvidia holds a sustainable market leadership position in gaming and the future autonomous driving market.
In addition to Nvidia, Stein also expresses optimism about the demand for AI in Monolithic Power. The company specializes in producing power management semiconductors and has extensive AI exposure across various sectors, including cloud computing, industrial applications, and communications. Stein envisions Monolithic Power transitioning to offer comprehensive technology solutions alongside its chips, which will result in increased revenue and improved profitability.
Overall, the advancements in AI continue to offer lucrative investment opportunities, making companies like Nvidia and Monolithic Power attractive for investors.