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Needham Believes Nvidia (NVDA) Won’t Stop Here


Needham analyst Rajvindra Gill maintained a Buy rating on Nvidia (NASDAQ: NVDA) today and set a price target of $350. The company’s shares closed yesterday at $271.34, close to its 52-week high of $285.22.

Gill said:

“This week, we had the opportunity to host an investor meeting with Mr. Ian Buck, GM of and Ms. of IR. We see striking parallels between NVIDIA’s dominance in AI/ ML and the “Wintel” platform during the era of PC computing. In the case of NIVDIA, we think that its unified CUDA platform combined with its proprietary interconnect and comprehensive inference/training software makes it uniquely positioned to capitalize on this next wave of computing. We raise our PT to $350 and increase our FY20 ests based on increased confidence that NVDA will begin to take a larger share of the inference market with its new TensorRT Hyperscaler Platform. We raise our overall data center revenue forecast by $500MM in FY20 to reflect an incremental 1MM servers deployed with GPU-accelerators.”

According to TipRanks.com, Gill is a 5-star analyst with an average return of 18.7% and a 61.2% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Everspin Technologies Inc, and Adesto Technologies Corp.

Currently, the analyst consensus on Nvidia is a Moderate Buy with an average price target of $290.52, which is a 7.1% upside from current levels. In a report issued on September 10, Merrill Lynch also maintained a Buy rating on the stock with a $340 price target.

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Based on Nvidia’s latest earnings release for the quarter ending July 31, the company reported a quarterly revenue of $3.12 billion and net profit of $1.1 billion. In comparison, last year the company earned revenue of $2.23 billion and had a net profit of $583 million.

Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is negative on the stock. Most recently, in June 2018, Michael Byron, the CAO of NVDA bought 9,018 shares for a total of $126,608.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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