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Nvidia Stock Rises; J.P. Morgan Lifts Target on PC Gaming Potential

Nvidia 'continues to execute across all segments,' J.P. Morgan analyst Harlan Sur said, lifting his price target to $215 from $176.
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Nvidia  (NVDA) - Get NVIDIA Corporation Report shares rose Tuesday after J.P. Morgan analyst Harlan Sur raised his price target to $215 from $176, affirming his overweight rating.

The company "continues to execute across all segments,” he wrote in a commentary.

“While the first half of the year is typically seasonally weaker than the second half, we expect solid demand in PC gaming to be a strong revenue driver for the company, offsetting personal computer [manufacturing], which is in secular decline.”

The Santa Clara, Calif., chipmaker's stock recently traded at $198.28, up 0.4%. It's been up as much as 2.4% on Tuesday. And it has jumped 34% over the past six months amid strong financial performance.

“We expect the data-center segment to grow strongly, as hyperscale customers continue to embrace graphics processing unit-accelerated deep learning for processing large data sets,” Sur said.

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“We are encouraged by strength in the automotive and enterprise segments as well, although strong adoption of autonomous driving in the market remains to be seen.”

Nvidia has a “valuation premium justified by earnings upside, earnings growth outlook, market leadership position, and leverage to secular trends,” Sur said.

Last month, TheStreet.com Founder Jim Cramer explained his different approaches to Nvidia and Apple  (AAPL) - Get Apple Inc. (AAPL) Report.

“The Apple 'own it, don't trade it' [mantra] has more to do with how the analysts handle it than it does in Nvidia. Nvidia, all the analysts love it and it's correct to love it because it's consistent," Cramer said.

Apple is a different story. "They [analysts] are constantly upgrading and downgrading, saying bad things about it," Cramer said.

He said Nvidia’s consistent treatment by Wall Street makes it more tradable.