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NVIDIA (NVDA) Hits 52-Week High on Solid Growth Drivers

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Share price of NVIDIA Corporation (NVDA - Free Report) rallied to a new 52-week high of $99.94, eventually closing a tad lower at $98.71 on Dec 15. This represents a phenomenal one-year return of 202.1%, better than the Zacks Semiconductor General industry’s return of 25.9% over the same period.

Currently, NVIDIA carries a Zacks Rank #1 (Strong Buy). Notably, the stock has a market cap of $51.99 billion. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Factors

NVIDIA’s sustained efforts toward attaining robust position in several emerging industries such as artificial intelligence, deep learning and driverless cars industry, makes us optimistic about its growth prospects. The company’s innovative product pipeline and strength in gaming and high-end notebook GPUs remain the positives. The company’s focus on GRID platforms can increase GPU adoption in data centers, giving it an advantage against its competitors.

Most recently, the company teamed up with the National Cancer Institute and the U.S. Department of Energy (DOE) in its bid to further accelerate cancer research.

Also the company collaborated with Microsoft (MSFT - Free Report) on artificial intelligence to make the technology accessible to enterprises.

Notably, the company also collaborated with IBM (IBM - Free Report) on a deep learning tool targeted at making computers think and learn in a human-like manner at an accelerated pace. 

However, a declining PC market, intensifying competition from Advanced Micro (AMD - Free Report) and customer concentration remain major risk factors for the company going ahead.  

NVIDIA CORP Price and Consensus

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2017 has increased to $2.43 over the last 30 days as all 10 analysts revised their estimates upward. Also, for fiscal 2018, estimates increased 43.5% to $2.77 per share over the same time frame, as 11 out of 13 analysts revised their estimates upward.

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