Citi analysts said Nvidia stock is a core holding on multiple secular themes, including virtual reality gaming, deep learning, artificial intelligence and self-driving cars, according to Barron's.
"We believe Street is underestimating sales/earnings growth in next three years as Nvidia continues to transform itself from a PC to a diversified gaming, data center and auto graphics company," the firm said in an analyst note.
Citi expects the Santa Clara, CA-based chipmaker's gaming unit to remain strong through 2019.
Nvidia's data center and automotive segments should also see modest growth, the firm added, Barron's reports.
Nvidia is slated to report 2016 fiscal third-quarter results after the market close on Nov. 10.
Shares of Nvidia were lower in late-afternoon trading on Wednesday.
Separately, 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.
The team rates Nvidia as a Buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. The team feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.