Susquehanna increased its NVIDIA cost target from $450 to $540, based on the expectation that NVIDIAs upcoming video gaming GPUs will offset any downturn in information center need in the 2nd half of 2020. NVIDIA has scheduled an event for Sept. 1 at which its anticipated to reveal its most recent line of high-end gaming graphics cards.
Oppenheimer isnt quite as positive, raising its NVIDIA price target from $400 to $500.
Oppenheimer isnt rather as optimistic, raising its NVIDIA rate target from $400 to $500. Oppenheimer is expecting a strong incomes report driven by information center demand, however like Susquehanna it sees an information center slowdown in the 2nd half of the year. Oppenheimer shares the view that video gaming will help balance out any weak point in data center company.
NVIDIA has guided for second-quarter earnings of $3.65 billion, plus or minus 2%. The acquisition of Mellanox is expected to contribute a low-teens percentage to the overall income figure. Experts are anticipating adjusted revenues per share (EPS) of $1.97, up from $1.24 in the prior-year period.
While NVIDIA may be benefiting from a boom in demand for gaming during the coronavirus pandemic, the stock is more pricey than its ever been by a wide margin. Shares of NVIDIA trade for around 25 times yearly sales, far above dot-com bubble levels and incredibly positive for a semiconductor company. It may take more than solid outcomes on Wednesday to improve the stock further.
Shares of graphics chip developer NVIDIA (NASDAQ: NVDA) rose on Monday following numerous rate target bumps from analysts ahead of the businesss second-quarter report. The stock was up about 6.2% at 11:25 a.m. EDT.
Greater cost targets originated from analysts at Susquehanna and Oppenheimer. Susquehanna boosted its NVIDIA cost target from $450 to $540, based upon the expectation that NVIDIAs approaching gaming GPUs will offset any slowdown in information center need in the second half of 2020. NVIDIA has arranged an event for Sept. 1 at which its anticipated to unveil its newest line of high-end gaming graphics cards.
Image source: NVIDIA.