Oppenheimer Reiterates Perform on Nvidia Corporation Following Analyst Day


Oppenheimer analyst Rick Schafer weighed in today with a few insights on Nvidia Corporation (NASDAQ:NVDA), after attending the company’s packed-house investor day, which took place in San Jose Tuesday. The analyst rates the stock Perform, without suggesting a price target. Nvidia shares are currently trading at $22.88, down $0.36 or 1.57 percent.

Schafer noted, "Overarching throughout the day was NVDA's rapid ecosystem development to further dislocate the GPU from its traditional PC OEM business. NVDA's transformation from a discrete GPU supplier to a systems level solutions provider is well on its way, evident by a dramatic TAM expansion and leverage that architectural unification is yielding. While still a sub-5% part of NVDA's business, Automotive remains an area of intense focus and excitement for NVDA, as the car becomes increasingly electronic and an extension of consumers "always connected" lifestyle."

Furthermore, "We've been warming up to NVDA's Enterprise (Quadro/GRID) story over the last several quarters, and while still early innings, we believe the long-term opportunities within these businesses should help NVDA ride the structural declines in PC OEM to a soft landing. Net, we walked away from the Analyst Day incrementally more positive on NVDA's business strategy, outlook and visual computing leadership; however, with most of these opportunities just beginning to take root, we believe declining PC attach rates and limited earnings leverage likely keep shares range bound, thus we remain sidelined for now."

According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Rick Schafer has a total average return of 25.2% and a 80.8% success rate. Schafer is ranked #20 out of 3533 analysts.

 

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