Nvidia Is 'En Fuego,' Analyst Lifts Target Price To $225

NVIDIA Corporation NVDA reported yet another record quarter Thursday. Aside from top- and bottom-line beats in the third quarter, the tech company also showed growth across all platforms, a dividend raise and a commitment to return $1.25 billion to shareholders in fiscal 2019.

The Analyst

Canaccord Genuity's Matthew Ramsay.

The Rating

Ramsay maintains a Buy rating on Nvidia's stock with a price target boosted from $190 to $225. (See Ramsay's track record here.)

The Thesis

Nvidia reported yet another record quarter, which was highlighted by 32 percent year-over-year revenue growth and record revenue in all four key growth segments, Ramsay said in a note. The datacenter segment saw its revenue growth accelerate to 20 percent from the prior quarter, while the organic gaming GPU business likely grew from a year ago despite a tough comp for the Pascal architecture, the analyst said. 

Nvidia's Q3 earnings make it clear that it's performing well across several secular growth markets, Ramsay said. In fact, Nvidia's momentum will likely continue, he said.

Artificial intelligence technologies will mature and new trends like deep learning, virtual/augmented reality and autonomous driving "will catalyze" growth over the longer term, Ramsay said. 

Price Action

Shares of Nvidia were trading higher by more than 5 percent early Friday at $215.92, outpacing the prior 52-week high of $212.90.

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