Nvidia (NVDA) The stock has been through the crosshairs this year and even the latest announcements made by the chip giant when it met the GTC did not help to move the needle on the shares.
NVIDIA announced the launch of the next generation GeForce RTX 40 Series GPUs powered by the Ada Lovelace architecture. In his keynote, CEO Jensen Huang called the new GPU a “quantum leap” that will give creators the ability to build fully imagined lives.
The H100 – billed as the most powerful AI-focused GPU manufactured by the company, based on the Hopper architecture and armed with Hopper’s next-generation Transformer Engine – is now in full swing and will begin shipping through OEMs in October.
Huang added that the 2nd generation OVX systems – designed to scale up meta applications and powered by Ada Lovelace L40 data center GPUs – are also now in full production.
That’s just a taste of what’s available. However, the Street’s tepid reaction may be indicative of Nvidia’s lost ground over the past year; declining Gaming sales, the expected loss of GPU revenue over the Ethereum merger and the US government’s restrictions on the H100’s exports to China, all contributed to a sour mood for this unstoppable growth story.
But write off Nvidia at your peril, seems to be the position of Rosneblatt’s Hans Mosesmann. The 5-star analyst thinks the Street is not fully understanding the seismic changes at play.
“Ada Lovelace and its big brother Hopper computing are going to be the biggest GPU launches in the history of GPUs and we’d like to say the biggest computing launches of the last generation in Silicon Valley,” Mosesmann wrote enthusiastically. “We understand that the Street is a bit of a snakebite and may not be averse to GTC’s super strategic stuff. Much less internalizing what Nvidia is doing with its Omniverse/AI prowess (cloud services, OVX computers, Enterprise S/W, Orin, Thor, and we could go on and on). But longer-term investors will be rewarded in our view as in past cycles.”
Mosesmann’s confidence is reflected in his Buy rating and is supported by a Street-high $320 price target, which suggests shares will change hands at a 141% premium per year from now. (To view Mosesmann’s track record, Click here)
Mosesmann is hardly the only analyst to come out bullish for NVDA; the stock has a 23 to 9 split in favor of Buy over Hold reviews, giving it a Moderate Buy consensus rating. Shares are priced at $132.61 and their average target of $205.74 suggests room for a 55% upside next year. (See Nvidia stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the analyst in question. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.