Proactive Investors - Apple Inc (NASDAQ:AAPL) reached a $3.5 trillion valuation and NVIDIA Corp (NASDAQ:NVDA) climbed back towards all-time highs, driven by analysts and investors evaluating how much AI could still move the needle for the tech industry.
Further signs of substantial investment in AI infrastructure emerged this week as data center operator CyrusOne announced it had secured a $7.90 billion line of credit to support current and future development projects in the US.
While CyrusOne is not a direct customer of Nvidia, the increased funding underscores the growing demand for AI capabilities, which benefits chip manufacturers like Nvidia.
Meanwhile, Apple’s stock gained 0.4% to $228.6 on Tuesday, meaning it reached a market capitalization of $3.51 trillion.
One of the sources of encouragement was Piper Sandler raising his price target for Apple to $225, citing the potential impact of AI developments following its recent unveiling of Apple Intelligence and improving iPhone sales in China.
Analysts noted: "From our perspective, the excitement is warranted, as AI could be a needle mover for upgrades. In addition, a return to growth in iPhone sales in China could create a tailwind as well in the second half."
Seven analysts have raised Nvidia’s target prices already in July, according to FactSet.
Bank of America (NYSE:BAC) analysts also noted a 13% year-over-year increase in Apple’s App Store revenue for the third quarter, maintaining a 'buy' rating with a $230 price target.
Analysts at KeyBanc also raised Nvidia's target price to $180, marking a 33% increase from the stock’s recent price. This rise comes after Nvidia's shares have already climbed 159% this year.