The stock climbed a smidgeon on Tuesday as a Tigress Financial Partners analyst raised his price objective for the chipmaker to a new high on Wall Street.
Ivan Feinseth, a Tigress analyst, raised his target price for Nvidia (ticker: NVIDIA).
) stock to $410 from $400, with a Buy rating reiterated. Credit Suisse, Needham, and Rosenblatt all have $400 price targets, thus his move breaks the tie. According to FactSet, the stock’s mean target price is $343.47, based on 40 target prices.
On Tuesday, Nvidia’s stock rose 0.2 percent. The stock has dropped 3% this year, but has risen 121 percent in the last year.
Feinseth noted in a research note that the target was raised owing to good takeaways from Nvidia’s investor day, the GTC Conference, which highlighted new products and the company’s continuous artificial intelligence breakthroughs.
“NVDA continues to strengthen its leadership position in all sectors,” Feinseth stated. “This includes operating the world’s most advanced data centres and apps for AI, machine learning, and Edge Computing.”
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Revenue could rise by 36% to $36.65 billion in the next 12 months, according to the analyst, thanks to increased data centre demand and new growing verticals. Drive Map, Feinseth’s autonomous-vehicle technology that has already been adopted by important participants in the area, including Lucid Group, is one of the most intriguing verticals for the company (LCID).
Nvidia, according to Feinseth, will prosper as the metaverse is carved out, as demand for the company’s graphics processing units (GPU), computers, artificial intelligence (AI), and cloud-infrastructure grows.
“From collaborative design to customer service avatars and videoconferencing to digital twins of industries, processing plants, and entire cities, Omniverse will be employed,” he stated. “NVDA’s industry-leading GPUs will power the Omniverse’s acceleration of virtual connected worlds.”
Nvidia’s contribution in the metaverse was likewise viewed positively by other observers. Following the investor day, Citi analysts Atif Malik and Amanda Scarnati said the event’s highlights included Nvidia’s new Grace computer processing unit and Hopper GPUs, which are built for AI.
Feinseth also mentioned that Nvidia’s cloud-gaming service, GeForce NOW, may help the company. The number of members has more than doubled in the last year, to over 15 million. This might continue to rise as Nvidia collaborates with Electronic Arts (EA) to bring additional games to its online platform, which is available regardless of console, whether it’s a cutting-edge gaming machine or a mobile PC device, he said.
FactSet asked 44 analysts that cover Nvidia stock, and 37 of them gave it a Buy or Overweight rating. Five people gave it a Hold rating, while two gave it a Sell rating.