TLDR
- Nvidia shares climbed 0.5% in premarket Friday trading following Thursday’s 2.1% gain
- Partner Foxconn posted 26% November revenue growth fueled by AI server demand
- HPE disappointed with 5% server revenue decline blamed on customer AI delays
- Morgan Stanley analyst sets $235 price target implying 38% upside potential
- Nvidia holds commanding 70-95% market share in AI accelerators and data-center GPUs
Nvidia shares pushed higher Friday morning as traders weighed conflicting signals from key AI hardware partners. The stock added 0.5% to reach $184.23 in premarket action.
The move extended Thursday’s 2.1% rally. Investors parsed contrasting quarterly results that revealed both strength and weakness in AI infrastructure spending.
Foxconn delivered the positive surprise. The Taiwanese manufacturer, formally named Hon Hai Precision Industry, reported November revenue soared 26% year-over-year.
Cloud and networking products drove the gains. This division now ranks as Foxconn’s biggest business, surpassing its famous role manufacturing iPhones for Apple.
AI servers represent a major component of that segment. The revenue spike points to healthy demand for hardware running artificial intelligence workloads.
Hewlett Packard Shows Weakness
HPE told a different story in its fiscal fourth quarter report. Server revenue dropped 5% to $4.46 billion, missing Wall Street forecasts.
The company blamed customer delays in AI product development. Those holdups crimped sales of HPE’s server offerings during the quarter.
The divergent results left market watchers debating the true state of AI spending. Chip sector peers posted modest premarket gains alongside Nvidia.
AMD ticked up 0.7% while Broadcom rose 0.9%. The moves suggested investors remain generally optimistic about semiconductor demand trends.
Wall Street Maintains Bullish Stance
Morgan Stanley analyst Joe Moore refreshed his Nvidia price target at $235. That figure represents 38% upside from the current $181.46 price level.
Market checks show Nvidia hasn’t surrendered meaningful share. The company controls 70-95% of the AI accelerator and data-center GPU markets.
Demand stays robust for Nvidia’s GPUs, high-bandwidth memory, and advanced packaging solutions. Moore highlighted the company’s edge in cost-performance metrics and software tools.
Buyers pick Nvidia to cut training times and slash operating expenses. The reliable product roadmap helps customers plan multi-year AI buildouts with confidence.
Supply constraints for GPUs and related parts signal hyperscalers are racing to expand AI capacity. Those tight conditions reinforce Nvidia’s dominant position.
Wall Street consensus lands at a $250.66 average price target. That matches Moore’s $235 forecast and implies 38% upside from current levels.
The high-end Street estimate stretches to $352. Moore’s target places Morgan Stanley among the more bullish shops covering the stock.
Other chip stocks showed mixed Thursday closes. AMD finished down 0.74% while Broadcom edged up 0.11% in regular trading.
Foxconn gained 1.09% and HPE jumped 2.88%. The varied performance across AI hardware players reflected uncertainty about near-term spending patterns.
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