Nvidia (NVDA) Stock: Next Stop, $310?

RBC Capital analyst Mitch Steves is out today with a research note on shares of Nvidia (NASDAQ:NVDA), reiterating an Outperform rating, while raising the price target to $310 (from $300), which implies about 30% upside from current levels. Here are 4 reasons why:

  • New upside case scenario of $13.00 in FY21E EPS (CY20E) based on higher operating margins.
  • Confidence in Data Center spending given positive results across major data center players.
  • Softer near-term gaming demand to be offset by 2H revenue ramps.
  • Higher long-term gross margin expectations for Pro Visualization and Gaming.

“We see continued potential for EPS upside driven particularly by DC and Gaming and the new long-term $13 CY20E EPS upside case reflects our belief in the secular growth drivers,” Steves concluded.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mitch Steves has a yearly average return of 26.5% and a 79% success rate. Steves has a 86.2% average return when recommending NVDA, and is ranked #185 out of 4830 analysts.

How does Steves’ bullish bet weigh in against the Street? It appears the analyst is not the only one enthusiastic on this chip giant’s prospects, with TipRanks analytics demonstrating NVDA as a Buy. Out of 26 analysts polled in the last 3 months, 18 are bullish on Nvidia stock while 8 remain sidelined. With a return potential of nearly 22%, the stock’s consensus target price stands at $288.36.


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