Graphics-chip maker Nvidia (NVDA) has seen its shares climb ahead of its fiscal third-quarter earnings report due out late Thursday. Nvidia stock received two price-target hikes on Monday.
Investment bank UBS reiterated its buy rating on Nvidia stock and raised its price target to 240 from 195. Deutsche Bank upped its price target to 190 from 160 but maintained a hold rating.
Nvidia stock rose 0.2% to 208.18 on the stock market today. On Nov. 7, Nvidia stock hit a 52-week high of 211.70. However, it remains well below its all-time high of 292.76, reached in October 2018 before the chip cycle turned negative.
UBS analyst Timothy Arcuri sees Nvidia benefiting from video game publishers adopting its ray-tracing technology as standard. He also sees Nvidia getting a lift from 7-nanometer data center chips, which could be announced next week.
Data Center Trends Improving
Cloud data center customers like Alphabet‘s (GOOGL) Google have been waiting for Nvidia’s new processors and are building them into their 2020 roadmaps, Arcuri said.
“All told, NVDA remains one of our top ideas as we have been focused on product cycle stories rather than ‘playing the semis cycle’,” Arcuri said in a note to clients.
SunTrust Robinson Humphrey analyst William Stein on Monday reiterated his buy rating on Nvidia stock and kept his price target of 216. He sees Nvidia reporting in-line or better results on Thursday.
Wall Street expects Nvidia to earn $1.57 a share on sales of $2.9 billion in its fiscal third quarter, according to Zacks Investment Research. Those estimates would translate to year-over-year declines of 15% in earnings and 9% in revenue. It also would mark Nvidia’s fourth quarter in a row of declines.
RBC Capital Markets analyst Mitch Steves on Sunday reiterated his outperform rating on Nvidia stock with a price target of 251. He sees upside in the third quarter from Nvidia’s gaming chip business along with improving data center trends.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor companies.
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