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Fairview HK: Wall Street praised the company's announcements during its 2022 GTC conference
NVIDIA Corporation (NVDA) shares jumped as much as 3.3% higher on Wednesday at 12:46 p.m. At 3:00 p.m. ET, the stock was still up 3.1%.
Oppenheimer expert Rick Schafer reaffirmed his outperform (buy) rating and $250 price objective on the company, representing a 90% gain over Tuesday's closing price. Schafer referenced NVDA's upcoming GeForce 40 Series, stating that he feels the company's gaming industry has been de-risked because of the recent stock price collapse and reset of expectations. More significantly, he believes that the current challenges are only temporary and that the investment thesis remains intact.
JPMorgan Chase & Co. (JPM) analyst Harlan Sur was similarly upbeat, retaining his overweight (buy) rating and $220 price objective on NVDA, or a 67% rise. In regard to semiconductors, software integration and ecosystem acceptance, he stated that NVDA remains "one to two steps" ahead of the competition.
Finally, Morgan Stanley (MS) analyst Joseph Moore kept his equal weight (hold) rating and $182 price target, implying a 38% potential gain. His "greatest takeaway" from the event was NVDA's pricing power since the firm aims to raise prices on high-end graphics processing units (GPU) used by gamers by around 28%. According to him, this would likely result in "significant"
There were additional encouraging developments. NVDA shares dropped earlier this month when the U.S. government tightened limitations on high-end semiconductor sales to China. Despite recent limits, CEO Jensen Huang stated at a press conference following GTC that he still believes there is a large demand for data centre CPUs. He also stated that the limits impose certain performance requirements, leaving "a wide area for us" in China.
It's worth noting that NVDA's data centre business has become a significant growth driver. Sales from the segment increased 61% year over year in the company's fiscal 2023 second quarter (ending July 31), accounting for more than half of total revenue. Investors anticipated that government limits would stifle revenue growth but the sky isn't falling and investors should stick with the stock.
Fairview HK Limited is one of the foremost privately owned Asia-Pacific orientated, boutique wealth management firms in Hong Kong. We offer our services to a selected group of families, family offices, institutions and fund managers, you may visit our website https://fairviewhk.com/
Page Updated Last on: Nov 18, 2022