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Nvidia Rises Again on Analyst Price Target Increases

Shares had already risen 4.5% on Monday following a big price target boost.
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Nvidia  (NVDA) - Get NVIDIA Corporation Report shares were rising again on Tuesday following Monday’s 4.5% gain after two analysts raised their price targets on the stock ahead of the chipmakers’ fiscal fourth quarter earnings on Thursday afternoon.

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Nvidia shares were rising 2.8% to $270.25 on Tuesday morning.

Rick Schafer of Oppenheimer raised his price target from $250 to $300, representing 14% upside to Monday’s close, and reiterated his firm’s outperform rating on Nvidia in a note on Tuesday morning. Schafer wrote that he sees a “beat/raise setup” on Thursday led by data center AI demand as hyper scaler spending began to recover in the second half of the year. In gaming, Schafer sees easy first half comps and second half demand from the likely launch of new 7nm GPUs as driving performance.

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“Coronavirus is a near-term wildcard for the group,” he wrote, “though any transitory impacts are unlikely to impact NVDA's structural growth/margin story.”

Meanwhile, Deutsche Bank analyst Ross Seymore raised his price target on Nvidia from $190 to $220, representing 16% downside to its close on Monday, but rates Nvidia a hold. In a note on Tuesday morning, he said he would not be surprised if Nvidia “delivered incremental upside in both its quarter and guidance” but that “sentiment-wise, this upside appears largely reflected in the stock with its +26% move in the last three months.

On Monday, Nvidia shares rose sharply as RBC raised its price target on the chipmaker to an analyst-wide high of $301 on expectations of a January quarter beat based on  better-than-expected gaming and data center performance. Morgan Stanley also said it expects a strong quarter and maintained its $259 price target.

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