NVIDIA (NVDA) Investor Day Brings Higher Conviction for Jefferies

April 6, 2016 6:51 AM EDT
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Price: $322.21 -1.39%

Rating Summary:
    37 Buy, 16 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 2 | New: 5
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Jefferies analyst, Mark Lipacis, attended Nvidia's Investor Day and walked away thinking NVIDIA (NASDAQ: NVDA) is uniquely investing in new platforms and tools that are enabling new markets like Deep Learning, VR, selfdriving cars and PC Gaming. He goes one step further to say "NVDA is poised to be a de facto standard as these markets develop", which should lead to multiple expansion.

NVDA announced two new products based on its Pascal architecture, the Tesla P100 and the DGX-1. The P100 is a data center accelerator targeted at hyperscale cloud companies, and is in volume production today, and we expect to ship to hyperscale customers by mid-year, and OEMs by 1Q17. The P100 is the world's largest finFET chip at 600 sq mm and 150 billion transistors with high-bandwidth memory and a 160 Gbps interconnect. NVDA also announced its DGX-1 the world's first deep learning supercomputer, targeted at AI researchers, pioneers and early adopters. The DGX-1 can replace 250 servers in a 3U rackspace for an ASP of $129K.

NVDA announced a unified software development kit (SDK) for GPU Compute application developers. NVDA SDKs include GameWorks (PC Gaming), VRWorks (Virtual Reality), ComputeWorks (Supercomputing), DriveWorks (Cars). NVDA has worked with software companies to make its SDK libraries compatible with development software so there is consistency across platforms. For example, a VR app written for Oculus would be consistent with HTC Vive. NVDA's investment in its SDKs have made it easy for developers to harness the power of the GPU, and is a key reason for its 5-yr, 800 bps expansion in its gross margins.

Jefferies maintained a Buy rating and $42 PT on NVIDIA.

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 $35.75 yesterday.

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 $35.75 yesterday.



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