Market Overview

Bank Of America's Key Takeaways From Nvidia's Investor Day

Share:
Bank Of America's Key Takeaways From Nvidia's Investor Day
Related NVDA
Nvidia Gets Burned On Earnings: This Chart Shows More Pain Ahead
48 Stocks Moving In Friday's Mid-Day Session
Even Jim Cramer Knows More Than The Fed (TalkMarkets)

NVIDIA Corporation (NASDAQ: NVDA)'s investor day presentation Tuesday was followed by a nearly 8-percent decline in the stock, but reaffirmed the bull case for the company, according to Bank of America Merrill Lynch. 

The Analyst

Bank of America's Vivek Arya maintains a Buy rating on Nvidia's stock with an unchanged $300 price target.

The Thesis

Nvidia's analyst day attracted 8,500 attendees a fourfold increase from five years ago, Arya said in a Wednesday note. (See the analyst's track record here.)

The company's presentation focused on three areas, Arya said: data center, gaming and autonomous driving. Here are some of the analyst's takeaways on each of the three business segments.

Data Center

  • Nvidia's total addressable market opportunity was estimated to be $50 billion versus $30 billion last year.
  • The company boasts multiple structural advantages and differentiated products, including the new DGX-2 supercomputer-in-a-box.

Gaming

  • Nvidia's gaming sales growth through 2020 should come at an annual rate of 19 percent.
  • Only 30 percent of the installed base has upgraded to Pascal, which implies "significant runway" for user upgrades.

Autonomous Driving

  • Management believes autonomous vehicles represent a $60-billion TAM by 2035.
  • Nvidia's car opportunity is "incremental to its infotainment business."
  • The company's products are powerful enough to address future needs, including collecting data, training models, and conducting simulations.

Price Action

Shares of Nvidia were trading lower by more than 2 percent at the time of publication Wednesday.

Related Links:

What To Expect From Nvidia's Analyst Day

Nvidia To Halt AV Fleet Testing As Uber Investigates Fatal Crash

Photo courtesy of Nvidia. 

Latest Ratings for NVDA

DateFirmActionFromTo
Nov 2018JefferiesMaintainsBuyBuy
Nov 2018Raymond JamesMaintainsOutperformOutperform
Nov 2018BMO CapitalMaintainsMarket PerformMarket Perform

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

Posted-In: Autonomous Driving Bank of America Data Center gamingAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (NVDA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

This Day In Market History: Ben Bernanke Tells Congress Housing Crisis Is Likely 'Contained'

For Now, Traders Endorse Biotech Rally