Why This Nvidia Analyst Says Stock Is Headed To $900 Per Share
NVIDIA Corp (NASDAQ:NVDA) is trading higher Tuesday following a price target increase from Raymond James.
What Happened: Raymond James analyst Chris Caso maintained a Strong Buy rating on Nvidia with a Strong Buy rating and raised the price target from $750 to $900.
Caso discussed the reasons behind the price target increase Tuesday on CNBC's "Squawk On The Street."
Nvidia is not being impacted by the sell-off in cryptocurrencies because the company has taken steps to remove crypto from its gaming numbers, Caso told CNBC.
The company's new products are not effective for mining crypto because of the lower hash rate Nvidia enacted, he added.
When Ethereum (CRYPTO: ETH) corrected in 2018, it caused a correction in NVIDIA's gaming market, Caso said, adding that the company has learned from the past and derisked itself from volatility in cryptocurrency.
Caso's Nvidia Thesis: Accelerating data center growth will drive the stock price higher in the short-term, while artificial intelligence will be the main driver for the company longer-term, Caso told CNBC.
High-end gaming demand will persist, and Nvidia is "the only game in town," Caso said.
NVDA Price Action: Nvidia has traded as high as $775 and as low as $356 over a 52-week period.
At last check Tuesday, the stock was up 2.24% at $753.61.
Photo courtesy of Nvidia.
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