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Nvidia Share-Price Targets Up on New Gaming Chips

Nvidia's new gaming chips prompt a number of Wall Street analysts to increase their price targets on the stock.
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Nvidia  (NVDA) - Get NVIDIA Corporation Report shares rose Wednesday as analysts raised their price targets after the semiconductor superstar on Tuesday introduced new gaming chips.

Nvidia shares recently traded at $569.90, up 3.1%. They returned 135% including dividends this year through Tuesday.

Credit Suisse analyst John Pitzer lifted his share-price target for the Santa Clara, Calif., graphics-chip specialist to $620 from $530, affirming an outperform rating.

The new chips will extend gaming growth past the third quarter, with the stay-at-home trend during the coronavirus pandemic providing ballast, he said, according to Bloomberg.

RBC Capital Markets analyst Mitch Steves boosted his share-price target for Nvidia to $610 from $528, keeping an outperform rating.

The new chips will cement Nvidia’s status as a “secular winner in the semiconductor space,” he said according to Bloomberg. 

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Steves was impressed with the broad range of the new chips along with attractive pricing on them - from $499 to $1,499.

In addition to its long-term strength, “we believe the stock will continue to trade higher near term as well,” he said.

Benchmark analyst Ruben Roy increased his share-price target for Nvidia to $600 from $540, affirming his buy rating. 

The Ampere architecture for the chips amounts to a “triple-double,” he said, according to Bloomberg.

That’s because compared with the previous Turing generation, Ampere has three times the number of cores and two times the performance, Roy said.

This amounts to the biggest generational leap in GPU performance in history, he said. That along with the reasonable pricing should give Nvidia a boost, Roy said.