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Wall Street #1 Analyst Sets High Expectations for NVIDIA Corporation (NVDA) Following CES 2018

Craig Ellis: We are encouraged with implications for 2018/19 Auto revenues for NVIDIA.


NVIDIA Corporation (NASDAQ:NVDA) was on a victory lap at CES 2018 after recording monster stock growth in 2017, but it wasn’t all horn-tooting. The graphics chip giant also unveiled business plans that it hopes will maintain its stock momentum through the next few years. Clad in his token black leather jacket, CEO Jen-Hsun Huang summarized the vibrantly-growing Gaming, AI, and Auto opportunities and key 2017 NVDA developments.

In reaction, Wall Street’s top analyst B.Riley FBR analyst Craig Ellis reiterated a Buy rating on Nvidia shares, with a price target of $270, which represents a potential upside of 22% from where the stock is currently trading. (To watch Ellis’ track record, click here)

Ellis commented, “We believe the 200MM GeForce users are up 2x versus 3-4 years ago and past eSports tracking has shown robust growth. Elsewhere, Huang believes AI is revolutionizing the $3T IT industry and we agree. We expect AI to be a primary competitive differentiator across most industries by early next decade and believe the coming data center retooling could be similar in magnitude to the late-90’s Internet 1.0 build-outs.”

“Most significantly for the evening’s session, Huang believes Autonomous vehicles will soon revolutionize the $10T transportation industry. The opportunity is reducing 82MM annual accidents and 1MM annual fatalities and improving efficiencies in the next 10 years as 1B more drivers will take the roads. By our count there were 10 new announcements impacting the Auto platform group. These included product sampling and release specifics (Drive Xavier, Drive Pegasus), new vehicle partnerships, a 50%+ increase in software developer engagements in the past year, and a full software stack to sit on top of its Drive systems including functional safety, simulation and AR, and intelligent experience. In our view these are leading systems where we believe ASP’s range from $200 to $2000+ increasingly augmented with software and development tools to extend the competitive moat.”

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 37.4% and a 82% success rate. Ellis has a 115.5% average return when recommending NVDA, and is ranked #1 out of 4727 analysts.