Shares of Nvidia (NVDA) - Get NVIDIA Corporation Report were rising Wednesday after the chipmaker was the subject of a bullish note at Piper Jaffray, which said it was impressed with the company's gaming and data center segments.
Gaming was a key growth driver for Nvidia's bull run but that segment has faltered in recent quarters. Now, Piper Jaffray analyst Harsh Kumar said the company's "two biggest growth drivers, namely gaming and data center, are back."
The company's data center business "appears to have stabilized, and we see growth in the segment moving forward." As a result, Nvidia is "one of the best-positioned semiconductor companies from a company-specific catalyst perspective."
The firm reiterated its overweight rating and $200 price target.
Nvidia rose earlier this week after the stock received a price-target hike from the analysts at RBC Capital Markets. They bumped their price target to $217 from $190, implying about 16% upside from current levels.
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 supported RBC's forecast of expanding gross margins for Nvidia.
Nvidia shares were rising 2.65% to $181.92 on Wednesday.