Oppenheimer top analyst Rick Schafer weighed in on NVIDIA Corporation (NASDAQ:NVDA), after hosting an investor meeting Monday at NVDA’s headquarters in San Jose, CA, as part of Oppenheimer’s 14th annual semiconductor bus tour. The analyst remains sidelined on NVDA, reiterating a Perfrom rating.

Schafer wrote,  The overarching theme from the meeting was driving GPU adoption for deep learning applications, particularly HPC, DC, and autonomous driving. The majority of these growth verticals are nebulous with undefined, but sizable, TAM. NVDA’s established parallel compute expertise is increasingly leveraged by players attempting to gain an edge in these rapidly expanding markets. High-end gaming provides the bulk of absolute dollar growth while allowing NVDA to fund investment in these relatively nascent markets. The $264M/year INTC royalty stream (90%-plus OM) expires in C1Q17. Most have removed this stream from their expectations for CY17, leaving risk to the upside, in our view.”

“Net, we walked away from the analyst day positive on NVDA’s business strategy, outlook and visual computing leadership; however, with most of these opportunities just beginning to take root, we believe the current valuation and limited near-term earnings leverage likely keep a lid on upside,” the analyst concluded.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rick Schafer has a yearly average return of 15.1% and a 68% success rate. Schafer has a average return when recommending NVDA, and is ranked #21 out of 3971 analysts.