NVIDIA (NVDA) PT Raised to $340 at BofA Securities After Keynote Highlights New Opportunities

(Updated - November 10, 2021 7:15 AM EST)

BofA Securities analyst Vivek Arya raised the price target on NVIDIA (NASDAQ: NVDA) to $340.00 (from $275.00) after viewing the GTC Keynote where CEO, Jensen Huang, outlined new technologies across AI, robotics, metaverse, and autos, that expand NVDA’s large addressable market.

The analyst reiterated a Buy rating, stating "we believe NVIDIA Corp. (NVDA) is uniquely ready with its combo of hardware (GPU, DPU, eventually CPU), software, and developer ecosystem to address any new markets that materialize. NVDA is also broadening into more subscription-like offerings like Omniverse Enterprise, which add consistent, recurring revenue to NVDA’s high-growth platform. Indeed, assuming just 5% penetration of Ominverse Enterprise by 2025 we see an additional $10bn of sales ($9K+ annual cost per 2 developers, with potential to reach 40mn developers) which translates to $1.50 in EPS, driving our l-t EPS Power towards $10+ from $8.50 prior, or a 32% l-t compounded EPS growth rate. We reiterate Buy, a top compute pick, and raise our PO to $340 (from $275) now on 58x CY23E EPS (vs. 47x prior) higher given new opportunities, but still within normal 1-2x EPS growth range that we believe is reasonable for high growth semis."

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