Between NVIDIA Corporation (NASDAQ:NVDA) and its stellar market advantage as well as Apple Inc. (NASDAQ:AAPL) shares soaring ahead of the iPhone X release, analysts from Goldman Sachs and Citigroup could not be more confident on these tech giants. Let’s explore reasons to be bullish on NVIDIA and Apple:
High-End Demand in NVIDIA’s Favor
Goldman Sachs analyst Toshiya Hari sees a yellow brick road ahead for NVIDIA, from solid leverage in the market to a compelling role against the rest of the chip players. Surveying full steam ahead for the chip giant, the analyst reiterates a Conviction Buy on shares of NVDA with a $130 price target, which represents a just under 33% increase from where the stock is currently trading.
Hari asserts, “Nvidia’s time to market advantage and competitive position are strong, in our view, evident in the fact that the company was able to drive ASP expansion in its Ti product line (+8% vs the prior GTX 980 Ti) in contrast to its last introduction of Ti products, where the launch price actually declined generation to generation.”
Moreover, “We think the GTX 1080Ti has potential to drive growth in the high end in the current quarter and going forward. Importantly, we believe consumers had expected a launch at CES in January (Nvidia’s fiscal fourth quarter), leading to a pause in purchasing in Dec/Jan. Given the nearly two month delay as well as the lack of any new AMD products for the next 1-3 months, we would expect Nvidia to benefit from what is likely significant pent up demand in the high end,” Hari contends.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Toshiya Hari is ranked #1,074 out of 4,511 analysts. Hari has a 64% success rate and gains 13.0% in his yearly returns. When recommending NVDA, Hari earns 31.6% in average profits on the stock.
TipRanks analytics indicate NVDA as a Buy. Out of 28 analysts polled by TipRanks in the last 3 months, 15 are bullish on NVIDIA stock, 9 remain sidelined, and 4 are bearish on the stock. With a return potential of nearly 12%, the stock’s consensus target price stands at $111.09.
Apple Hitting Record Highs
For Citigroup analyst Jim Suva, for investors who wonder if Apple can break the glass ceiling of success any further, the answer is yes. First up, the analyst highlights the iPhone X as a forthcoming catalyst for the tech giant. Near-term, Apple certainly stands on solid ground, but for those who wonder if longer-term, the giant can continue to maximize on its profits, Suva points ahead to India as a major asset.
Therefore, the analyst reiterates a Buy rating on AAPL while boosting the price target from $140 to $160, which represents a close to 15% increase from where the shares last closed.
“With Apple stock hitting all time high prices we get asked: ‘What’s next for Apple?’ Our response is ‘Near term is the iPhone 8 super-cycle and longer term India (aka Applewood) both of which will drive not only sales & EPS growth but importantly an expansion in Apple’s valuation multiple.’ Inside this report we detail out the features we expect on the iPhone 8 as well as our view on Apple’s opportunity in India. Buy Apple stock ahead of the iPhone 8 super-cycle, growth in margin accretive services, opportunity for growth in major countries like India, and potential tax reform. Apple shares, currently trading at 14.5x or 12.5x ex net cash (compared to the market at 18x), likely to see sustainable multiple expansion,” Suva concludes.
According to TipRanks, three-star analyst Jim Suva is ranked #1,480 out of 4,511 analysts. Suva has a 52% success rate and realizes 3.0% in his yearly returns. When recommending AAPL, Suva yields 10.4% in average profits on the stock.
TipRanks analytics show AAPL as a Buy. Based on 37 analysts polled by TipRanks in the last 3 months, 28 rate a Buy on Apple stock, 7 maintain a Hold, while 2 issue a Sell. The 12-month average price target stands at $145.79, marking a 4% upside from where the stock is currently trading.