Nvidia: Credit Suisse starts coverage with 'outperform'
(CercleFinance.com) - Credit Suisse has initiated coverage of US graphics chipmaker Nvidia with an "outperform" rating and a target price of 225 dollars.
In a note to clients, the broker says the 50% collapse in the share price over the past eight weeks has provided an "extremely compelling entry point."
Despite near-term setback, Credit Suisse sees at least a 15% compound annual growth rate (CAGR) for the California-based company overall and a 30% growth for data centers.
However, "while Nvidia has enjoyed a first mover advantage in artificial intelligence and machine learning, competition from existing players (Intel, AMD, Xilinx), start-ups (Cerebras, Wave, Graphcore, etc.), and hyperscalers (Google, Amazon, Facebook) will likely lead to share declines in the future," it warns.
Shares of Nvidia are currently up 2.2% at 148.2 dollars, outperforming the Nasdaq Composite index, which is up 1.5%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note to clients, the broker says the 50% collapse in the share price over the past eight weeks has provided an "extremely compelling entry point."
Despite near-term setback, Credit Suisse sees at least a 15% compound annual growth rate (CAGR) for the California-based company overall and a 30% growth for data centers.
However, "while Nvidia has enjoyed a first mover advantage in artificial intelligence and machine learning, competition from existing players (Intel, AMD, Xilinx), start-ups (Cerebras, Wave, Graphcore, etc.), and hyperscalers (Google, Amazon, Facebook) will likely lead to share declines in the future," it warns.
Shares of Nvidia are currently up 2.2% at 148.2 dollars, outperforming the Nasdaq Composite index, which is up 1.5%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.