Categories: Business

Nvidia Stock Is Rising. There’s a New Street-High Price Target.

[ad_1]

Text size

Nvidia headquarters


Justin Sullivan/Getty Images




Nvidia

stock edged higher Tuesday after a Tigress Financial Partners analyst raised his price target for chip maker to a new Wall Street high.

Tigress analyst Ivan Feinseth increased his target price for Nvidia (ticker:




NVDA

) stock to $410 from $400 and reiterated a Buy rating. His move breaks a four-way tie, as Credit Suisse, Needham, and Rosenblatt all have $400 price targets. The mean target price for the stock, based on 40 target prices, is $343.47, according to FactSet.

Nvidia stock inched up 0.2% on Tuesday. The shares have lost 3% this year, but gained 121% over the last 12 months.

In a research note, Feinseth wrote that the target increase was due to the positive takeaways from Nvidia’s investor day, the GTC Conference, which highlighted new products and the company’s ongoing advancements in artificial intelligence.

“NVDA continues to expand its leadership position in all areas, including running the world’s most advanced data centers and applications for AI, machine learning, and Edge Computing,” Feinseth wrote.

The analyst believes revenue could increase by 36% to $36.65 billion over the next 12 months, driven by gains in data center demand and new emerging verticals. One of the most exciting verticals for Feinseth is Drive Map, the company’s autonomous-vehicle technology that has already been adopted by key players in the field, including Lucid Group (LCID).

Feinseth also predicts that Nvidia could flourish as the metaverse gets carved out, as demand for the company’s graphics processing units (GPU), computing, AI, and cloud-infrastructure increases.

“Omniverse will be used from collaborative design, customer service avatars, and videoconferencing to digital twins of factories, processing plants, and entirecities,” he wrote. “NVDA’s industry-leading GPUs will drive the acceleration of virtual connected worlds that will be the Omniverse.”

Other analysts were also optimistic about Nvidia’s role in the metaverse. Following the investor day, Citi analysts Atif Malik and Amanda Scarnati said Nvidia’s new Grace computer processing unit and Hopper GPUs, which are designed for AI, were highlights of the event.

Nvidia could also receive a nice boost from its cloud-gaming service, GeForce NOW, Feinseth added. Over the last year, membership more than doubled to over 15 million members. This could keep growing as Nvidia partners with Electronic Arts (EA) to bring more games to its online platform, which is easily accessible regardless of the console, whether it be a state-of-the-art gaming computer or a mobile device of PC, he wrote.

Of the 44 analysts covering Nvidia stock polled by FactSet, 37 rated it at Buy or Overweight. Five rated it at Hold, and two have Sell ratings.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

[ad_2]
Source link
Admin

Recent Posts

Super Slot Games Review

Super slots provide the pinnacle of casino gaming with their interactive bonus rounds, captivating graphics,…

4 months ago

The Evolution and Impact of  Nanomedicine

Introduction to Nanomedicine Nanomedicine, a subfield of nanotechnology, involves the application of nanoscale materials and…

4 months ago

Chumba Online Casino Review

Chumba Casino provides an extraordinary online gaming experience. Its sweepstakes model allows players to win…

5 months ago

How to Find the Best Online Casinos to Play For Free

Online casinos provide quick, simple, and highly convenient gambling experiences for their players. Offering a…

5 months ago

How to Achieve a Flawless Complexion with the Right Products

Achieving a flawless complexion is a common skincare goal. With the right face care products, you can enhance…

5 months ago

Creating Ideal Matches: The Mutual Selection of Clients and Businesses

Shared values and goals, transparency, understanding each other's needs, communication, and respecting boundaries are vital…

5 months ago