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Wells Fargo Names Nvidia As Top Semi Idea Into 2020, Lifts Price Target To $270

Wells Fargo Names Nvidia As Top Semi Idea Into 2020, Lifts Price Target To $270

NVIDIA Corporation (NASDAQ: NVDA) has evolved to become an indomitable force in the gaming sector, while also making strong inroads into several growth areas, prompting an analyst to be positive on the stock.

The Analyst

Wells Fargo's Aaron Rakers maintained an Overweight rating on Nvidia and increased the price target from $240 to $270. (See his track record here)

The Thesis

Nvidia represents the most significant investor sentiment upside, driven by expectations of a meaningful acceleration in data center growth through 2020 and continued strong notebook adoption, Rakers said.

Rakers expects Nvidia to point to continued positive visibility on the reco

p>Nvidia's data center gross margin is likely to be into the low/mid-70% range, 10 points above the corporate gross margin, Rakers estimates.

"We maintain a positive view on the strategic positioning / future leverage of NVIDIA's pending acquisition of Mellanox (close in early-2020)," Rakers wrote in a note.

The firm designated Nvidia as its top semiconductor idea into 2020.

Price Action

Nvidia shares traded higher by 1.5% to $238.95, having hit a 52-week intra-day high of $240.39 earlier in the session.

Related Links:

Nvidia Has One Of The Best Opportunities To Maintain High Multiple, Morgan Stanley Says In Upgrade

Bank Of America Likes AMD, Nvidia Ahead Of 2020 Gaming Market Recovery

Latest Ratings for NVDA

Jan 2021Truist SecuritiesMaintainsBuy
Jan 2021SusquehannaMaintainsPositive
Nov 2020B of A SecuritiesMaintainsBuy

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings


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