We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Nvidia (NVDA - Free Report) briefly moved more than 4% higher in morning trading Friday, quickly touching an intraday high of $176.85 in the process. The scorching hot chipmaker’s latest pop comes after yet another bullish analyst report, this time with a focus on Nvidia’s artificial intelligence potential.
Today’s analyst note comes from Evercore’s C.J. Muse, who reiterated his “outperform” rating on NVDA. Muse also raised his price target for the stock to $250 from $180, which would represent a 48% premium to Thursday’s close.
“Our sense is management believes that investors still severely underestimates the impact of AI and the size of the potential market,” Muse wrote in a note to clients. “We are only at the cusp of AI's growth potential and NVIDIA is creating THE AI computing industry standard.”
The analyst also noted that Nvidia has spent more than $10 billion in research and development for its CUDA software programming platform, which helps build out AI software. Muse said that Nvidia has created an industry standard that “will be nearly impossible to replicate.”
Nvidia shares are now up more than 60% year-to-date and 170% over the past 52 weeks. The stock is also currently sporting a Zacks Rank #1 (Strong Buy). Based on current consensus estimates, full-year earnings are expected to come in 40% higher this year, although Muse believes Nvidia’s earnings growth story is only just beginning.
“We believe the tremendous growth opportunities led by AI in the Data Center and Automotive verticals supports a clear path to $10 in earnings power over the next 3-5 years,” the analyst said.
Last year, Nvidia posted earnings of $2.57 per share. The Zacks Consensus Estimate is currently calling for profits to reach $3.60 per share this year.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Why Is Nvidia (NVDA) Stock Gaining Today?
Shares of Nvidia (NVDA - Free Report) briefly moved more than 4% higher in morning trading Friday, quickly touching an intraday high of $176.85 in the process. The scorching hot chipmaker’s latest pop comes after yet another bullish analyst report, this time with a focus on Nvidia’s artificial intelligence potential.
Today’s analyst note comes from Evercore’s C.J. Muse, who reiterated his “outperform” rating on NVDA. Muse also raised his price target for the stock to $250 from $180, which would represent a 48% premium to Thursday’s close.
“Our sense is management believes that investors still severely underestimates the impact of AI and the size of the potential market,” Muse wrote in a note to clients. “We are only at the cusp of AI's growth potential and NVIDIA is creating THE AI computing industry standard.”
The analyst also noted that Nvidia has spent more than $10 billion in research and development for its CUDA software programming platform, which helps build out AI software. Muse said that Nvidia has created an industry standard that “will be nearly impossible to replicate.”
Nvidia shares are now up more than 60% year-to-date and 170% over the past 52 weeks. The stock is also currently sporting a Zacks Rank #1 (Strong Buy). Based on current consensus estimates, full-year earnings are expected to come in 40% higher this year, although Muse believes Nvidia’s earnings growth story is only just beginning.
“We believe the tremendous growth opportunities led by AI in the Data Center and Automotive verticals supports a clear path to $10 in earnings power over the next 3-5 years,” the analyst said.
Last year, Nvidia posted earnings of $2.57 per share. The Zacks Consensus Estimate is currently calling for profits to reach $3.60 per share this year.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>