The Santa Clara, CA-based company designs graphics processing units for the gaming market, as well as system on a chip units (SOCs) for the mobile computing and automotive market.
Nvidia is the fifth best-performing component of the S&P 500 Index over the past year, gaining 54% vs. a 2.4% decline for the Index. It has rallied 39% since early February lows, outpacing the SPX by 28 percentage points over the period, the firm noted.
"NVDA's core gaming business, which accounts for 57% of revenue, is strong and there are a number of markets that could drive demand for graphics processing units (GPU) including virtual reality gaming, cloud data center acceleration and autonomous driving," MKM wrote in an analyst note.
The firm said to long the stock ahead of the company's analyst day on April 5 and its earnings release in May.
MKM has a "buy" rating and $39 price target on the stock.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of A on Nvidia.
This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks rated.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NVDA