NVIDIA (NVDA): Good Enough To Keep The Stock Moving - Nomura

August 12, 2016 8:01 AM EDT
Get Alerts NVDA Hot Sheet
Price: $71.87 --0%

Rating Summary:
    21 Buy, 19 Hold, 3 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 2
Trade NVDA Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Nomura Securities analyst, Romit Shah, reiterated his Buy rating on shares of NVIDIA (NASDAQ: NVDA) after the company reported another strong quarter and guide that was materially higher than his estimates and consensus. The analyst believes shares will continue to trade at a substantial premium as revisions move higher.

Nvidia indicated that roughly one-third of the gaming installed-base is still on Maxwell, with the rest on older GPUs. The analyst believes that Pascal-based GPUs should incentivize the base to refresh, creating double digit revenue growth in the gaming segment in CY16 (+20%) and CY17 (+14%).

Nvidia also noted that "deep learning" is seeing a sharp increase in revenues and engagement. Management indicated that roughly half of datacenter revenues come from deep learning, one-third from HPC and rest in virtualization. The analyst believes that the launch of Tesla P100 should continue to drive growth in datacenter, which should grow +95% in CY16 and +50% in CY17.

The price target of $62.50 is up from $55.00.

For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.

Shares of NVIDIA closed at $59.70 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Nomura, Tesla

Add Your Comment