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Nvidia Target at Wall Street High $1,000; BMO Lauds Data-Center Lines

BMO lifted its Nvidia price target to a Wall Street high $1,000 as the data-center business adopts a 'meaningful software component.'

Nvidia  (NVDA) - Get NVIDIA Corporation Report shares firmed on Thursday after BMO Capital Markets analyst Ambrish Srivastava raised his price target on the chip titan to $1,000 from $75 and affirmed an outperform rating.

The target on the Santa Clara, Calif., company is the highest on Wall Street, according to Bloomberg.

That reflects his “confidence in the data center business as it continues to evolve from hardware to a hardware with a meaningful software component.”

Nvidia recently traded at $806.10, up 0.8%. The shares have leaped 53% over the past six months on Nvidia's financial performance.

“We now see the company's data-center business growing to a $32 billion business a few years out vs. our prior expectation of $25 billion,” Srivastava said.

“We also think that as software starts to become a bigger portion of the business, gross margin will continue to trend [up. We] now see gross margins of 75% for the business vs. our prior modeled 72%.”

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Further, “We arrive at our target price of $1,000 with a higher 40 times price-to-earnings multiple vs. our prior 35 times,” he said.

Nvidia Chart Strategy Update: Real Money's Bruce Kamich

Nvidia shares jumped on Monday after three of the world's largest chipmakers diverged from other big tech companies and blessed Nvidia’s proposed acquisition of U.K.-based Arm Holdings. SFTBY

Broadcom  (AVGO) - Get Broadcom Inc. Report, Marvell  (MRVL) - Get Marvell Technology Group Ltd. Report and Taiwan's MediaTek have become the first Arm customers to publicly support the $40 billion proposed takeover.

Analysts at Citi sees a "big step forward" in the three companies' support for the deal. They said this signals that U.K. regulators will probably end up clearing the acquisition.

Citi now sees a 30% probability that the deal gets fully approved. 

Jim Cramer,'s founder, says Nvidia will complete the acquisition.

Nvidia is a holding in the portfolio of Jim Cramer's Action Alerts PLUS investing club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.