(Bloomberg) — Nvidia Corp. shares soared on Monday as more analysts raised their price targets on the stock, a sign of growing optimism about the chipmaker’s highly anticipated results later this week.

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The average price target for the stock has been moving steadily higher recently, and is above $520, up from $505 just a week ago. The current target implies an upside of about 11% from current levels.

The stock gained 8.5% on Monday, its biggest one-day percentage gain since May 25. Shares are up 221% this year, compared with a gain of 41% for the Philadelphia Stock Exchange Semiconductor Index. Much of the rally reflects optimism over artificial intelligence, which Nvidia is a key player in.

HSBC, KeyBanc Capital Markets, and BMO Capital Markets are among the latest firms to boost their targets ahead of the Aug. 23 release of Nvidia’s second-quarter results. The report is expected to show significant demand for the chips used to process AI services. Revenue is seen rising 65% from the year-ago period, according to data compiled by Bloomberg.

This is one of the first reports by Nvidia where AI is expected to be the primary focus. Generative AI services like ChatGPT were thrust into the spotlight earlier this year and the excitement surrounding applications of artificial intelligence buoyed stocks like Nvidia. Last quarter, Nvidia gave a forecast that was far stronger than expected, cementing its status of a primary beneficiary of spending on AI.

“Although market expectations have clearly risen for Nvidia and the overall AI supply chain, we expect bullish AI server momentum continued to surpass market expectations,” wrote HSBC analyst Frank Lee, who has a buy rating on the stock.

KeyBanc Capital Markets, meanwhile, expects Nvidia’s results and outlook will be “meaningfully above” consensus expectations, given strong demand trends.

Rosenblatt Securities, Piper Sandler, UBS, and Morgan Stanley have also lifted their targets recently.

The overall consensus on Nvidia is extremely positive, as nearly 90% of the analysts tracked by Bloomberg recommend buying the stock.

(Updates to market close.)

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