NVIDIA (NVDA): Management Meeting TakeAways - UBS
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UBS anlayst, Stephen Chin, reiterated his Buy rating on shares of NVIDIA (NASDAQ: NVDA) after meeting with management. The analyst believes the company's data center chip sales for machine learning can be sustained and chip sales into the autonomous car market could see an inflection in the next few years. After meeting with management, the analyst still feels comfortable with data center sales growth of 25% in both FY18 and FY19.
The machine learning market is a large opportunity as evidenced by Intel making 2 recent acquisitions. One area of pushback was constraints that are out of NVDA's control possibly constraining growth temporarily (such as a limited numbers of data scientists to work on advanced projects that may cause a near term pause).
For now, the analyst believes that structurally, GPUs will continue to take more $'s of the compute spend in the data center. The upside case assumes NVDA gets 5% share or $1B of this $20B data center chip market in the next 2-3 years, and potentially 25% longer term.
No change to the price target of $71.
Shares of NVIDIA closed at $67.40 yesterday.
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