Nvidia (NASDAQ:NVDA) investors have had a lot to celebrate. The company’s graphics processing unit (GPU) remains the gold standard among hardcore and casual gamers alike, and the advent of cloud computing and artificial intelligence (AI) have created vast new markets for NVIDIA’s products.
These developments have led to massive growth, sending Nvidia shares jumping about 32% year-to-date. However, the company will need to produce blockbuster earnings to keep that trend going.
Adding his two cents to the discussion is B.Riley FBR’s top analyst Craig Ellis: “We preview F2Q19 results and F3Q19 guidance moderately above Street $3.096B (-3.5%)/$1.84 and $3.327B (+7.5%)/$1.98 (we are $3.111B (-3.0%)/$1.84 and $3.362B (+8.1%)/$2.04) based on a detailed analysis of Gaming, Data Center, and Auto Platform product, technology, ecosystem, and execution dynamics. Risks exist including F2Q’s GTX Pascal gaming card reseller channel burn-off into an RTX Volta launch, and crypto demand remains poor. However, mitigating extreme Gaming risk are robust gaming notebook demand, healthy e-sports activity, continued Fortnight mojo, AMD laterals, typically strong execution under CEO Huang and CFO Kress, and F3Q’s powerful Volta-based GeForce ASP boost.”
“Any overt cryptocurrency focus misses the diversified unit and ASP expansion point, software ecosystem competitive advantages, and potential for new platform group growth from areas like healthcare and/or robotics. Shares are up 31.7% YTD to out-perform the SOX lending sell the news risk, but we expect long-term outperformance from well-executing and fast growing NVDA and its shares,” the analyst continued.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Craig Ellis has a yearly average return of 34.4% and a 74.1% success rate. Ellis has a 115.6% average return when recommending NVDA, and is ranked #8 out of 4847 analysts.
Overall, Wall Street’s confidence backing this Chinese tech player is strong, with TipRanks analytics showcasing NVDA as a Strong Buy. Based on 15 analysts polled in the last 3 months, 12 are bullish on the stock, while 3 remain sidelined. The 12-month average price target stands at $304.92, marking a nearly 20% upside from where the stock is currently trading.