Market Overview

NVIDIA's Deal With Alibaba Highlights Cloud Opportunity

Share:
NVIDIA's Deal With Alibaba Highlights Cloud Opportunity

Shares of NVIDIA Corporation (NASDAQ: NVDA) were trading higher by more than 2 percent on Friday as investors and traders were encouraged by the prospects of its new partnership with Alibaba Group Holding Ltd (NYSE: BABA)'s cloud unit, AliCloud.

Mark Lipacis of Jefferies commented in a note that AliCloud will partner with around 1,000 data developers and ultimately become a $1 billion business. The analyst stated that partnering with Nvidia will "make it happen."

Related Link: Nvidia Details New Partnership With Alibaba's Alicloud

Lipacis continued that the partnership represents just one of many similar announcements between hyperscale cloud companies and "highlights one of the growth legs that underpins our Buy thesis."

Finally, Lipacis pointed out that Nvidia's cloud business has grown at a 31 percent compounded annual growth rate over the past three years and represents 6 percent of revenues. The analyst added that he expects the cloud segment to continue driving growth moving forward.

Shares of Nvidia remain Buy rated with an unchanged $38 price target.

Latest Ratings for BABA

DateFirmActionFromTo
Feb 2020MaintainsOutperform
Feb 2020MaintainsStrong Buy
Feb 2020ReiteratesBuy

View More Analyst Ratings for BABA
View the Latest Analyst Ratings

Posted-In: AliCloud cloud Cloud Companies Jefferies Mark LipacisAnalyst Color News Analyst Ratings Best of Benzinga

 

Related Articles (NVDA + BABA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
EQIXCFRAMaintains700.0
SPGCFRADowngrades120.0
EXPECFRAMaintains130.0
MATCFRAMaintains15.0
AEMCFRAMaintains90.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com