Analysts are optimistic about Nvidia again after it unveils new products

Analysts are again starting to get optimistic about Nvidia after the semiconductor giant lost favor due to geopolitical tensions and a slowdown in the chip sector. Citi and JPMorgan both said last week that solid demand for PC gaming, as well as cloud adoption in data centers, would be the tailwind for Nvidia. That’s after the company unveiled new flagship gaming chips that use artificial intelligence to improve graphics. Nvidia’s data center business, which sells chips used in AI, has also boomed in recent years. “While [first half] tends to be seasonally weaker than 2H, we expect solid demand in PC gaming to be a strong revenue source for the company, offsetting PC [original equipment manufacturer], which is in secular decline,” JPMorgan said in a Sept. 21 note. The bank added that it also expects Nvidia’s data center segment to grow strongly, noting the strength of the company’s automotive and enterprise businesses. JPMorgan said Nvidia’s new gaming products, in our view, would be a strong demand catalyst in 2023. “NVIDIA is well positioned to continue to capitalize on key secular trends in AI, high-performance computing, gaming and autonomous vehicles,” said JPMorgan. “In short, NVIDIA remains 1-2 steps ahead of its competitors in silicon/systems, software and ecosystems adoption.” The bank has an overweight rating for the stock and a price target of $220, an increase of approximately 75% from Friday’s close of $125.16. Citi also has a buy rating on Nvidia, with a price target of $248, or up about 98%. It said Nvidia is “working hard and fast.” te” to offer customers alternative products, given the restrictions in China. stocks are down nearly 60% so far this year as it struggles with geopolitical headwinds. In August, the US government announced it would restrict sales of chips to China and imposed a new licensing requirement on future exports to China to reduce the risk of the products being used by the Chinese military. “We’re working with our customers in China to satisfy their planned or future purchases with alternative products and can source licenses where replacements aren’t enough,” an Nvidia spokesperson told CNBC at the time. The news caused a number of downgrades for the stock in early September. However, in the same week, Ark Invest’s Cathie Wood won 226,717 shares of Nvidia.

Supply hyperlink

Leave a Comment