Nvidia’s (NVDA) GPU Technology Conference Kicks Off; Rosenblatt Maintains Buy on the Stock


Today marks the start of NVIDIA’s (NVDA) GPU Technology Conference (GTC) 2019 event in San Jose, California. The technology giant is ready to start four days of talks and sessions focused on virtual reality (VR), artificial intelligence, automotive, graphics cards and a whole lot more. Within the event, the company will also conduct its yearly investor conference.

“We expects to get an update on the positioning of the new Turing GPU which included, earlier this year, new ray tracing capabilities,” said Rosenblatt analyst Hans Mosesmann. However, the company recently chose to offer non-ray tracing SKUs due to what the analyst considers “cost and/or some push-back by the market given the lack of game titles at the moment.”

Nvidia recently made a major turn to the cloud by acquiring Mellanox, which sells internal ethernet systems to data centers, for $6.8 billion.

What are the implications of the NVDIA/Mellanox combination? Mosesmann noted, “With the possible exception of the Mellanox acquisition, investors will be keen on getting an update on the timing and ramp of 7nm gaming and compute GPUs given AMD’s aggressive 7nm posture in 2019 […] We do expect a Mellanox update that should help the Street understand the reasoning behind the unusual move by Nvidia. Our sense is that Jensen calculated that Mellanox, as part of Intel (also believed to be a bidder), would have seen a less aggressive investment in Infiniband vs. Intel’s own OmniPath technology that would have hampered Nvidia’s GPU roadmap.”

All in all, Mosesmann reiterates a Buy rating on NVDA stock with price target of $190, suggesting the stock has about 12% upside from current levels. (To watch Mosesmann’s track record, click here)

Other analysts share a similar enthusiasm with Mosesmann when it comes to NVDA stock. TipRanks data shows out of 30 analysts, 20 are bullish, 9 are sidelined and only 1 is bearish. With a consensus price target of $185.30, the potential upside is about 10%. (See NVDA’s price targets and analyst ratings on TipRanks)

 

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