Market Overview

Nvidia Gets Double Upgrade Ahead Of Earnings

Share:
Nvidia Gets Double Upgrade Ahead Of Earnings
Related NVDA
Goldman Sachs Adds Nvidia To 'Conviction Buy' List
Gamers Delight: A New E-Sports ETF Is Here
Cash In On Tight Labor Markets With These (Automation) Growth Stocks (Seeking Alpha)

The incredible growth of NVIDIA Corporation (NASDAQ: NVDA) coupled with its stock’s lofty market valuation has created plenty of Nvidia bulls and bears on Wall Street. On Wednesday, one prominent bear made a complete 180-degree turn.

The Analyst

Wells Fargo analyst Aaron Rakers issued a double upgrade of Nvidia's stock, upping his rating two notches from Underperform to Outperform. He also more than doubled his price target from $140 to $315.

The Thesis

According to Rakers, Nvidia has several long-term drivers the market doesn’t fully appreciate. He said the number of developers working on CUDA programming has risen by roughly 350,000 in the past year to 850,000. Nvidia also said this week its new Turing GPU architecture and Quatro RTX product cycle will are on tap for the fourth quarter of 2018.

At the same time, Rakers said fears over a decline in cryptocurrency mining demand have been overblown.

“While concerns over gaming GPU channel inventory levels vis-à-vis weakening crypto-currency mining demand could persist (note: Ethereum accounts for ~70% of NVIDIA’s crypto exposure; no Bitcoin exposure), and thus result in a perceived delayed launch of consumer Volta solutions, we think these concerns are well-understood [and] miss the long-term architectural shifts and secular growth drivers moving in NVIDIA’s favor,” Rakers said in the note.

The analyst said Nvidia could be in line to benefit from major demand from the government as it pushed to build next-generation supercomputers over the next five years or so.

Price Action

Nvidia's stock traded lower by 1.3 percent to $258.55 on Wednesday. The company will release Q2 earnings after Thursday's market close

Related Links:

Q2 13F Roundup: How Buffett, Einhorn, Loeb And Others Adjusted Their Portfolio

What To Expect From Nvidia's Q2 Earnings

Latest Ratings for NVDA

DateFirmActionFromTo
Sep 2018KeyBancInitiates Coverage OnSector Weight
Aug 2018OppenheimerUpgradesPerformOutperform
Aug 2018Stifel NicolausMaintainsHoldHold

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

Posted-In: Aaron RakersAnalyst Color Cryptocurrency Upgrades Price Target Top Stories Markets Analyst Ratings Best of Benzinga

 

Related Articles (NVDA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DISBarclaysUpgrades130.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
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.

RBC Downgrades Intercept Pharma On Valuation, Remains Positive On Upcoming Trial Data

As Millennials Pivot From Booze To Buds, The Beer Industry Strikes Cannabis Partnerships