We’re hiking our price targets on Nvidia and two other rallying portfolio stocks

By News Room Last updated Mar 22, 2024

This week’s strong market pushed three of our portfolio stocks well clear of our current price targets. Since these rallies look like they have legs, we’re taking our numbers up. Nvidia price target increased to $1,050 NVDA YTD mountain Nvidia YTD Coming off a bullish GTC conference where Nvidia CEO Jensen Huang made the case that the artificial intelligence investment cycle is still in its early innings, we are increasing price target on the chip giant to $1,050 per share from $850. With such a big move this year, an over 90% gain, we’re reiterating our 2 rating, meaning look to buy on pullbacks. Not only did Nvidia unveil its next-generation Blackwell platform, Jensen stressed the importance of the company’s software. Nvidia is taking a page out of Apple’s playbook as Jensen builds a platform company driven by software and hardware working together in an ecosystem. “It’s not just a chip. It is a platform. Now what does that mean? It means it’s filled with software. What does that mean? It’s recurring revenue; it’s not one-off,” Jim Cramer said Tuesday. “There are a lot of people who say it’s a defensive move. I say it’s an offensive move.” Eaton price target hiked to $330 ETN YTD mountain Eaton YTD The need for all new AI data centers is going to increase the demand for electricity and new solutions to modernize the grid. As a result, we remain positive on power management company Eaton even after its big run of more than 30% in 2024. It hit another 52-week high on Friday. We’re increasing our Eaton price target to $330 per share from $290 and reiterating our buy-equivalent 1 rating. As a sanity check, Bank of America increased its Eaton price target to $340 from $330 on Thursday following a meeting with management. The analysts said the key message from the meeting was that growth opportunities are in their early innings. Indeed, in the company’s fourth-quarter report , management said its electrical backlog coverage is roughly three times its historic average, providing them the visibility of growth at least through 2025. Wells Fargo raised to $60 WFC YTD mountain Wells Fargo YTD Wells Fargo has made a string of new 52-week highs, and we think those gains can continue due to better-than-expected net interest income performance from higher interest rates, more buybacks, and ongoing cost discipline. Shares have already increased around 16% year to date, getting a big boost last month when a key consent order tied to the bank’s phony accounts scandal of 2016 was lifted. We’re increasing our Wells Fargo price target to $60 per share from $54 and reiterating our 2 rating. Since becoming CEO of Wells Fargo in 2019, Charlie Scharf has made good progress in clearing regulatory orders that predated his tenure. He’s still looking to clear the biggest one: the Federal Reserve’s $1.95 trillion asset cap. (Jim Cramer’s Charitable Trust is long NVDA, ETN, WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

NVIDIA’s founder and CEO Jensen Huang speaks during the annual Nvidia GTC Artificial Intelligence Conference at SAP Center in San Jose, California, on March 18, 2024.

Josh Edelson | Afp | Getty Images

This week’s strong market pushed three of our portfolio stocks well clear of our current price targets. Since these rallies look like they have legs, we’re taking our numbers up.

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