NVIDIA (NVDA) PT Raised to 'Street High' $450 at Susquehanna; Mellanox Could Add $20-$30B in Market Cap

Susquehanna analyst Christopher Rolland raised the price target on NVIDIA (NASDAQ: NVDA) to a 'Street High' $450.00 (from $420.00) while maintaining a Positive rating after a recent call with management reinforced their belief in DC (A100), automotive progress and the Mellanox integration.

Rolland said they are long-term believers in the Mellanox acquisition and believe it could add $20 to $30 billion of market cap to NVIDIA over time.

The analyst commented, "business. Importantly, NVIDIA believes Mellanox will provide them with more fully comprehensive system solutions enabling them to further penetrate new end-markets and applications such as edge computing, smart cities, telecom, and even automotive. Of these opportunities, we view low-latency automotive Ethernet to be of particular interest as we think it could be an important part of the real-time AV processing puzzle. Management views cars as “data centers on wheels” that will need to incorporate low-latency, high-throughput interconnects throughout. While we think there is a good chance management will change their posture over time, NVIDIA seemed to prefer a systems approach (i.e., building boxes) to providing merchant switch silicon semiconductors to OEMs. Nevertheless, we see the Mellanox asset growing at a double-digit rate over the next three to five years and growing market share under new management. We ultimately think the Mellanox assets could add $20 to $30 billion to NVIDIA’s market cap and perhaps more."

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