BofA Merrill Lynch analyst Vivek Arya raised his price target on Nvidia shares to $250 from $225 as he believes the company's data center growth will soon benefit from "the next-big AI landmark," namely natural language processing, or "conversational AI." The ability to accurately listen, understand, speak and contextualize human speech needs compute requirements 100 times that of today's dominant image/video classifier AI machines, said Arya, who sees Nvidia being "in prime position" to benefit from this shift given its portfolio of hardware and software and its developer ecosystem. Arya keeps a Buy rating on Nvidia, which he continues to identify as his top large-cap pick.
Mizuho analyst Vijay Rakesh raised his price target for Nvidia to $230 from $185 saying the company reported "good" October quarter results with improving margins expected in the January quarter. The analyst believes Nvidia's "strong" position in gaming, data center growth, low inventories positions it well for fiscal 2021. He keeps a Buy rating on the shares.
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CEO Jensen Huang says: "Our gaming business and demand from hyperscale customers powered Q3's results. The realism of computer graphics is taking a giant leap forward with NVIDIA RTX. This quarter, we have laid the foundation for where AI will ultimately make the greatest impact. We extended our reach beyond the cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world's largest industries. We see strong data center growth ahead, driven by the rise of conversational AI and inference."
Nvidia (NVDA) is scheduled to report results of its third fiscal quarter after the market close on Thursday, November 14, with a conference call scheduled for 5:30 pm ET. What to watch... To see the rest of the story go to thefly.com. See Story Here