Top Analyst Lifts Price Target on NVIDIA Corporation (NVDA) on Grounds of Rising Long-Term Enthusiasm

Canaccord's Matt Ramsay believes NVDA is benefiting from the AI playing field and the chip giant's growth momentum shows no signs of stopping.


NVIDIA Corporation (NASDAQ:NVDA) has won over a boost in confidence from one of Wall Street’s best performing analysts, Matt Ramsay at Canaccord.

Between meeting with the chip giant’s management team at the Supercomputing Conference in Denver as visiting at headquarters during Silicon Valley bus tour meetings, the analyst’s conviction is keyed up on the tech player’s staying power down the line.

Especially regarding predictions for datacenter’s rapid-fire growth and gaming cards to ramp come next year in a worldwide market outclassing $100 billion, the analyst maintains a Buy rating on NVDA stock while bumping up the price target from $225 to $250, which implies a nearly 17% upside from where the stock is currently trading.

Ramsay highlights, “Following very impressive October quarter results and several announcements at SC’17, we believe NVIDIA continues to execute strongly in several secular growth markets catalyzed by artificial intelligence (AI). In fact, as applications of highly parallel GPU computing expand and developer tools and AI algorithms mature, our positive thesis continues to play out with strong gaming GPU growth expected to continue in Q4/F’18 with the Pascal gaming and Volta datacenter (including Inference) ramps and we believe new trends including deep learning, virtual/augmented reality, and autonomous driving will catalyze new market growth longer term.”

Even with expectations for rivalry to flare up as time passes, with Ramsay pointing to Intel/Mobileye and Qualcomm/NXP, among others, the analyst bets on Nvidia’s “dominant position in autonomous car training that could be leveraged into in-car volume silicon opportunities long term.” All the same, though the analyst maintains stronger confidence long-term, he warns investors to brace themselves for at best “a plateau” and at worst a dip in infotainment platform sales in the short term “as the company completes the shift in investment from in-car graphics/display toward autonomous driving.”

Matt Ramsay has a very good TipRanks score with a 68% success rate and a high ranking of #64 out of 4,723 analysts. Ramsay garners 24.4% in his yearly returns. When recommending NVDA, Ramsay gains 138.4% in average profits on the stock.

Cautious optimism is circling this tech stock, with TipRanks analytics exhibiting NVDA as a Buy. Based on 26 analysts polled by TipRanks in the last 3 months, 14 rate a Buy on Nvidia stock, 11 maintain a Hold, while 1 issues a Sell on the stock. The 12-month average price target stands at $216.70.

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