Nvidia: Next Stop $700? This Analyst Thinks So, , on October 8, 2020 at 11:52 pm

Financial News
By
On October 8, 2020
In Financial News
Tags:

It has been a blowout year for Nvidia (NVDA). The chip giant’s relentless forward march has been boosted by strong macro driven performances from its two main breadwinners – gaming and data center – and an increasing focus on rising secular trends, including autonomous vehicle technology and artificial intelligence (AI).It also completed the takeover of data specialist Mellanox and, pending regulatory approval, has the $40 billion acquisition of UK-based chip designer ARM lined up next.It is the latter’s anticipated addition, along with its implications on Nvidia’s growing AI opportunity, which has Needham analyst Rajvindra Gill laying out the bull case for Nvidia.Gill has a Buy rating on NVDA shares accompanied by a Street high price target of $700. Upside from current levels is a healthy 26%. (To watch Gill’s track record, click here)Nvidia is currently hosting its week-long virtual GTC conference, and has already revealed a string of new developments, including a partnership  with Glaxo Smith Kline’s AI lab to discover new medicines and vaccines, its intention to build the most powerful supercomputer in the U.K. with a focus on healthcare AI research, deep learning-based models used by AMEX to prevent fraud, and AI driven software to reduce the amount of data used in video calls.It has also brought Nvidia’s increasing reliance on ARM into sharp focus with the announcement of a new type of processor called a Data Processing Unit (DPU).The Blue field-2 DPU combines 8 64-bit A72 Arm cores and Mellanox ConnectX-6 NIC. The cutting-edge data-center-on a chip is designed to unburden critical networking, storage, and security duties from CPUs.Gill notes that with the new processors in tow, Nvidia’s data center TAM (total addressable market) will be increased from $50 billion to $100 billion by 2024.The analyst expects AI to “inevitably change every aspect of business and life,” and further said, “We believe NVDA is at the forefront of this trend with its vast hardware and software portfolio. With the acquisition of Arm, we believe NVDA becomes ubiquitous in the semiconductor industry, as it will offer all three processors (CPU, GPU, NPU) to address the AI revolution. We believe the earnings multiple is justified by climbing demand for cloud storage, both at hyperscaler and enterprise/verticals customers, driven by the stay-at-home economy.”Gill might be Wall Street’s most prominent Nvidia bull, but the GPU giant hardly lacks support elsewhere. NVDA’s Strong Buy consensus rating is based on 26 Buys, 4 Holds and 1 Sell. However, considering shares have already appreciated by 135% year-to-date, the analysts anticipate the stock to stay range-bound for the foreseeable future, as the $571.19 average price target indicates. (See NVDA stock analysis on TipRanks)To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

Nvidia: Next Stop $700? This Analyst Thinks SoIt has been a blowout year for Nvidia (NVDA). The chip giant’s relentless forward march has been boosted by strong macro driven performances from its two main breadwinners – gaming and data center – and an increasing focus on rising secular trends, including autonomous vehicle technology and artificial intelligence (AI).It also completed the takeover of data specialist Mellanox and, pending regulatory approval, has the $40 billion acquisition of UK-based chip designer ARM lined up next.It is the latter’s anticipated addition, along with its implications on Nvidia’s growing AI opportunity, which has Needham analyst Rajvindra Gill laying out the bull case for Nvidia.Gill has a Buy rating on NVDA shares accompanied by a Street high price target of $700. Upside from current levels is a healthy 26%. (To watch Gill’s track record, click here)Nvidia is currently hosting its week-long virtual GTC conference, and has already revealed a string of new developments, including a partnership  with Glaxo Smith Kline’s AI lab to discover new medicines and vaccines, its intention to build the most powerful supercomputer in the U.K. with a focus on healthcare AI research, deep learning-based models used by AMEX to prevent fraud, and AI driven software to reduce the amount of data used in video calls.It has also brought Nvidia’s increasing reliance on ARM into sharp focus with the announcement of a new type of processor called a Data Processing Unit (DPU).The Blue field-2 DPU combines 8 64-bit A72 Arm cores and Mellanox ConnectX-6 NIC. The cutting-edge data-center-on a chip is designed to unburden critical networking, storage, and security duties from CPUs.Gill notes that with the new processors in tow, Nvidia’s data center TAM (total addressable market) will be increased from $50 billion to $100 billion by 2024.The analyst expects AI to “inevitably change every aspect of business and life,” and further said, “We believe NVDA is at the forefront of this trend with its vast hardware and software portfolio. With the acquisition of Arm, we believe NVDA becomes ubiquitous in the semiconductor industry, as it will offer all three processors (CPU, GPU, NPU) to address the AI revolution. We believe the earnings multiple is justified by climbing demand for cloud storage, both at hyperscaler and enterprise/verticals customers, driven by the stay-at-home economy.”Gill might be Wall Street’s most prominent Nvidia bull, but the GPU giant hardly lacks support elsewhere. NVDA’s Strong Buy consensus rating is based on 26 Buys, 4 Holds and 1 Sell. However, considering shares have already appreciated by 135% year-to-date, the analysts anticipate the stock to stay range-bound for the foreseeable future, as the $571.19 average price target indicates. (See NVDA stock analysis on TipRanks)To find good ideas for tech stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage