Technology company Nvidia Corporation (NVDA) recently announced that it is expanding its partnership with Lenovo by allowing the company early access to VMware’s Project Monterey.
Following the news, shares of the company appreciated 3.6% on Tuesday. The stock, however, pared its gains slightly to close at $204.43 in extended trade.
Project Monterey is aimed at improving the performance of data centers by enhancing their manageability and security by using up-to-date networking technologies, including NVIDIA BlueField DPUs. Further, the early access program allows corporations to make use of VMware-enabled preconfigured clusters accelerated by BlueField-powered servers, including Lenovo ThinkAgile VX and ThinkSystem Ready-Nodes.
The Vice-President and General Manager of Enterprise and Edge Computing at NVIDIA, Justin Boitano, said, “Lenovo’s collaboration in our Project Monterey early access program is a key step in allowing enterprises to embrace AI’s transformational benefits while tackling security and performance challenges.” (See NVIDIA stock chart on TipRanks)
On October 5, KeyBanc analyst John Vinh reiterated a Buy rating on the stock. The analyst’s price target of $260 implies upside potential of 27.1%.
The analyst said, “We are positive on NVDA, given strong demand trends for gaming GPUs despite significant crackdowns in China related to crypto mining. With pent-up demand and indications NVDA has been able to procure incremental capacity, this should support modest sequential growth and upside to forward estimates, into what is normally a seasonally softer fiscal fourth-quarter period.”
Consensus among analysts is a Strong Buy based on 23 Buys, 1 Hold and 1 Sell. The average NVIDIA price target of $239.52 implies upside potential of 17.1%.
NVIDIA scores a 9 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 48.9% over the past year.
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