Analysts Weighed in on NVIDIA Corporation Following Its Investor Day


NVIDIA Corporation (NASDAQ:NVDA) hosted an exciting investor day in California on March 17. Nvidia has been at the forefront of visual computing since 1999 when the company invented the GPU, or graphic processing unit, which controls visual applications in cars, phones, and robots. Nvidia is also known for producing SOCS (system-on-chip units), which is a chip that integrates all parts of a computer.

Nvidia announced its new Titan X chip, which boasts 6 billion transistors and holds twice the amount of memory as previous GPUs. The company also elaborated on Drive PX, a self-driving car platform, which will become available in May. Tesla’s Elon Musk was present at the event promoting the future of self-driving cars. Musk believes that autonomous cars are the safest option and will become ubiquitous in the future. Though Nvidia’s automobile sector is small, Nvidia CEO Jen-Hsun Huang commented “The car is a software computer on wheels… The big bang of self-driving cars is about to happen.”

Analysts weighed in on Nvidia following the event.

On March 18, analyst Needham Rajvindra Gill reiterated a Buy rating on Nvidia with a $27 price target following the company’s analyst day. Gill noted that Nvidia’s presentation reinforced that “the company is undergoing a transformation from a component supplier to a platform-based solutions provider.” Gill explained that Nvidia is “expanding its TAM” and “offering higher-margin, higher value-added solutions.” Software will become a “key priority” during this transformation. Gill concluded, “We came away from the analyst day impressed by the company’s steadfast focus on its transformation and increased focus on attractive end markets.”

Rajvindra Gill has a 63% overall success rate recommending stocks with a +21.4% average return per recommendation.

Nvidia Gill

According to SmarterAnalyst, analyst Rick Schafer of Oppenheimer reiterated a Perform rating on Nvidia but did not provide a price target. Schafer noted Nvidia’s “rapid ecosystem development” and the company’s “transformation from a discrete GPU supplier to a systems level solutions provider.” The analyst noted the small but exciting automotive focus of the company and the potential long-term opportunities of “NVDA’s Enterprise (Quadro/GRID).” Schafer concluded, “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.”

Rick Schafer has an 81% overall success rate recommending stocks with a +25.2% average return per recommendation.

Nvidia Schafer

Overall, the top analyst consensus for Nvidia on TipRanks is Hold.

 

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