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Nvidia Gets a New Street-High Price Target

There’s no stopping the Nvidia (NVDA) juggernaut. The semiconductor/AI/graphics giant – they all apply – has its finger in all the pies, from gaming to crypto to data center to the opportunities opening in the metaverse and AI/ML applications.

The company kicked off its 2021 GTC conference on Tuesday and Rosenblatt analyst Hans Mosesmann is effusive in his praise following CEO Jensen Huang’s keynote.

“Nvidia has planted the seeds of accelerated computing triangulating the major parties to create a secular movement: gamers, scientists, auto industry, operations optimization, robotics, and creators,” the 5-star analyst said.

Huang made the bold claim that the company is basically the leader in “accelerated” computing, which is key to practically all AI/ML from now on in. Nvidia keeps on broadening its full stack coverage of the space, which now includes CUDA compiler technologies, accelerated specialized libraries, and a software suite that covers the entire data center “at scale.”

Jensen’s keynote also touched upon the company’s Omniverse platform, which forms the “structural foundation” for Meta’s Metaverse vision. And here Mosesmann doesn’t hold back either, noting Nvidia is “so, so far ahead of any chip company in virtual world dynamic it’s not even close.”

While Jensen also announced the Quantum-2 networking platform which incorporates the Quantum 2 InfiniBand switch, Bluefield, and CX7 NICs (network interface cards), Mosesmann stresses that the main takeaway is that Nvidia’s announcements are “largely software-centric” which serve to make Nvidia’s existing hardware “so much more valuable.”

There’s no end to Mosesmann’s superlatives, who concludes, “Nvidia is a company that is moving into another level entirely that we see as moving more and more into a software IP-centric play.”

To this end, Mosesmann reiterated a Buy rating for the tech behemoth and attached a Street-high price target of $400. The implication for investors? Upside of 35% from current levels. (To watch Mosesmann’s track record, click here)

The rest of the Street’s current outlook for Nvidia offers a conundrum; on the one hand, of the 23 reviews on record, barring 1 Hold, all the rest say Buy, culminating in a Strong Buy consensus rating. However, most think the shares are overvalued at current levels; going by the $251.50 average price target, the stock will slide ~15% over the next 12 months. It will be interesting to see whether the analysts downgrade their ratings or upgrade price targets over the coming months. (See Nvidia stock analysis on TipRanks)

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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.