Nvidia's stock price jumped 2.04% to $318.46 a share after Wedbush analyst Matt Bryson reiterated his outperform rating on the company's stock and hiked his price target to $340 a share.
That is up from $312.10 a share previously, and represents a 6.7% premium over Nvidia's current trading price.
The new price target represents a 33x multiple based on Wedbush's estimate for Nvidia's fiscal 2022 of earnings of $10.25 per share, the analyst noted.
Bryson is forecasting that Nvidia will beat Wedbush's quarterly estimates when the chipmaker releases its first quarter earnings on May 22. Wedbush is forecasting first quarter earnings per share of $1.70 a share, revenue of $2.9 billion and gross margin of 65.4%.
Sales of Nvidia's GPUs (graphics processing units) for use in the data center sector are expected to lead the way, according to Bryson.
Wedbush's Bryson is forecasting an 8% sequential increase in data center sector revenue, following a 33% increase last quarter.
Despite a big increase in gaming demand, and higher than expected switch consumption, disruption to retail channels due to the coronavirus crisis is likely to lead to an 11% sequential decline in revenue from Nvidia's GPU sales in the sector.
While the Wedbush analyst is forecasting a 12% jump in GPU revenue from sales to the auto sector, Bryson also sees "risk" to the numbers as well.
Meanwhile, Nvidia appears poised on Thursday to unveil its new Ampere GPU microarchitecture, the successor to Turing, according to Wedbush's Bryson.