When Wall Street’s #1 Analyst Says Buy Nvidia (NVDA), You Should Listen


Nvidia (NASDAQ:NVDA) is riding the wave in technology sector strength. The stock jumped nearly 40% over the past six months, after the chip giant made a slew of product announcements in addition to the reiteration of strong trends in gaming, machine learning and autonomous vehicles.

So where is Nvidia heading from here? Wall Street’s #1 analyst Craig Ellis believes the new product engine is generating some underappreciated positives. The recent developments leave the top analyst incrementally more confident in 2H Data Center and long-term Robotics growth.

Ellis wrote, “We return to NVIDIA following new product announcements from late May and early June that we believe have underappreciated near- and long-term Data Center and Robotics growth implications along with partner product news we believe augurs well for continued robust HPC growth inside the Data Center group.”

“First, 5/29’s HGX-2 “AI in a box” product news means Data Center is refreshing its integrated systems one year after launch, a meaningful C2H19/F2H19 segment revenue catalyst. We outline four reasons below for sales optimism including improved market positioning and two-fold ASP benefits. Sticking with Data Center, on 6/8 the DOE’s Oak Ridge National Labs launched the massive Summit supercomputer with its 27,648 Tesla Volta GPUs. This should now rank as the world’s most powerful system, with sister system Sierra likely coming in a solid #2 later this year. We believe AI-optimized GPU-accelerated proof points, while expected, can further flame system maker, software developer and customer interest in NVDA’s integrated AI boxes. Lastly, 6/3’s new Jetson hardware and Isaac Software robotics products seem eerily reminiscent of Data Center’s early days, we believe foreshadowing a new platform group in 3-4 years.” the analyst explained.

Net net, Ellis reiterates a Buy rating on Nvidia stock with a price target of $300, which represents a potential upside of 13% from where the stock is currently trading.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Craig Ellis has a yearly average return of 40% and a 84% success rate. Ellis has a 122.5% average return when recommending NVDA, and is ranked #1 out of 4832 analysts.

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