The Street is sleeping on Nvidia stock, top analyst says

Nvidia (NVDA) the stock has gone through a squeeze this year, and even the latest announcements made by the chip giant at its fall GTC gathering didn’t really help move the needle on the stock.

NVIDIA has announced the release of the next generation GeForce RTX 40 Series GPUs powered by the Ada Lovelace architecture. In his keynote, CEO Jensen Huang called the new GPU a “quantum leap” that will give creators the ability to build fully simulated worlds.

The H100 – touted as the most powerful AI-focused GPU the company has produced, which is based on the Hopper architecture and armed with Hopper’s next-generation Transformer Engine – is now in full production and will begin shipping through OEMs in October.

Huang also said that the 2nd generation OVX systems – designed to scale metaspace applications and designed to be powered by Ada Lovelace L40 data center GPUs – are also now in full production.

This is just a taste of all the things on offer. Still, the Street’s tepid response is perhaps a reflection of the luster Nvidia has lost over the past year; declining game sales, the expected loss of GPU revenue due to the Ethereum merger, and US government restrictions on H100 exports to China have all helped dampen sentiment for this once unstoppable growth story.

But write off Nvidia at your peril, seems to be the position of Rosneblatt’s Hans Mosesmann. The 5-star analyst thinks the Street is completely underestimating the seismic changes in the game.

“Ada Lovelace and PC big brother Hopper are set to be the biggest GPU launches in GPU history, and dare we say the biggest computing launches in the last generation in Silicon Valley,” Mosesman wrote excitedly. “We realized that Street is a snake and maybe not in the mood for all the cool GTC stuff, which is extremely strategic. Much less internalized what Nvidia is doing with its Omniverse/AI thrust (Cloud Services, OVX PCs, Enterprise S/W, Orin, Thor and we could go on and on). But longer-term investors will be rewarded in our view, as in past cycles.”

Mosesmann’s confidence is reflected in his Buy rating and is supported by a high price of $320, which suggests the stock will change hands at a 141% premium in one year. (To see Mosesmann’s record, Press here)

Mosesmann is hardly the only analyst who is bullish on NVDA; the stock has a 23 to 9 split in favor of buy over hold reviews, giving them a moderate consensus rating of buy. Shares are priced at $132.61, and their average target of $205.74 suggests a 55% upside opportunity over the next year. (See Nvidia stock forecast at TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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