Evercore ISI on Friday issued the highest Nvidia (NVDA) price target on Wall Street, saying that the tech giant is on the cusp of a tipping point in the company becoming the AI standard platform.
Analyst C J Muse told clients to expect Nvidia shares to rally to $400 from Thursday’s close at $267.40 over the next year. That would be a gain of nearly 50% to a level that is higher than any other analyst projection listed by TipRanks. (See NVDA’s price targets and analyst ratings on TipRanks)
Nvidia investors reacted positively to the price target boost, bidding up the stock nearly 5% to $280.83.
Muse wrote, “We hosted investor meetings with NVDA’s CEO (Jensen Huang), CFO (Colette Kress) and IR team (Simona Jankowski and Shawn Simmons) in New York City over the last three days. Management’s major focus throughout meetings revolved around NVDA’s platform based approach for accelerated computing, along with stressing the three primary drivers for Turing including high-end gaming, rendering and Inference. As for our takeaways, we believe investors were more appreciative of Nvidia’s opportunity set in creating the AI Industry standard (at least vs. last year). This includes the coupling of NVDA’s full stack solution (from silicon to software) along with its unparalleled scale which creates a positive feedback loop within deep learning. In turn, this enhances the company’s competitive positioning and serves to accelerate market growth as NVDA is able to redesign the entire stack to optimize for specific end market domains. We have seen AWS do this. We have seen x86 do this. We have seen ARM do this… now it’s NVDA’s time.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst C J Muse has a yearly average return of 14.8% and a 64% success rate. Muse has a 42.1% average return when recommending NVDA, and is ranked #834 out of 4878 analysts.