B.Riley FBR’s top analyst Craig Ellis is out today with a research note on shares of Nvidia (NASDAQ:NVDA), following the publication of the Top500 supercomputer list, which charts the most powerful computer systems in the world. The list offers implications for NVDA’s Data Center Platform Group and competitive dynamics thereto, and that’s the main point behind Ellis’ note.
Ellis wrote, “We discussed potential for an NVDA Volta-powered system to attain a new #1 ranking for the US (“New Product Engine generating Some Under-Appreciated Positives”), and indeed the DOE’s Oak Ridge National Labs big Summit supercomputer with its 27,648 GPU’s (six for every two server CPU’s) seized that slot. Sister system Sierra, which runs at Lawrence Livermore National Labs with its 17,280 Volta’s, is now the new #3 system (with four GPU’s for every two server CPU’s). Overall, accelerated systems rose by 8/8% H/H versus November 2017, to a new high of 110, while NVDA’s count rose by eleven to a record 98 for 89% share. So, on a Y/Y basis, systems are up 25/34% with market share up 880 bps. While not all big government, research and other such systems run workloads relevant for acceleration, we believe that over numerous years penetration could rise 2x or more, a long term Data Center Platform Group growth tailwind.”
Net net, “Nvidia’s company-specifics appear encouraging with this most recent Data Center read,” and as such, the analyst reiterates a Buy rating on the stock, with a $300 price target, which represents a potential upside of 24% from where the stock is currently trading.
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 78% success rate. Ellis has a 117.8% average return when recommending NVDA, and is ranked #3 out of 4822 analysts.
Out of the 33 analysts polled in the past 12 months, 22 rate Nvidia stock a Buy, 10 rate the stock a Hold and 1 recommends a Sell. With a return potential of 14%, the stock’s consensus target price stands at $275.15.