Shares of Nvidia (NVDA) - Get Report were rising in trading after analysts at RBC Capital raised the chipmaker's price target to $217 from $190 as positive channel checks suggest positive trends in the company's gaming-related semiconductor chips.
Nvidia's Data Center is expected to recover in the fourth quarter thanks to a product refresh announcement that is expected to come during the period. This development further supports RBC's forecast of expanding gross margins for Nvidia.
The price target represents a potential 19.2% upside from the stock's closing price Friday of $181.97. The stock was up 3% to $187.50 in trading Monday.
RBC also expects the stock to be the best performing large-cap stock in analyst Mitch Steves' universe.
"We believe that we're past the bottom from a demand perspective," Steves said.
Nvidia has had an up and down year in 2019, but the stock has gained nearly 40% year to date.