Tech

The street sleeps on Nvidia shares, says top analyst

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Nvidia (NVDA) stocks have gone through the wringer this year, and even the chip giant’s latest announcements at its fall GTC meeting didn’t really help move the needle on the stock.

NVIDIA has 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 gives creators the ability to build fully simulated worlds.

The H100 — touted as the most powerful AI-focused GPU the company has manufactured, based on the Hopper architecture and armed with Hopper’s next-generation Transformer Engine — is now in full production and will ship through OEMs in October.

Huang also said the 2nd-generation OVX systems — designed for scaling out metaverse applications and powered by Ada Lovelace L40 data center GPUs — are now also in full production.

That’s just a selection of what’s on offer. Still, the Street’s lukewarm response may be a reflection of the shine Nvidia has lost in the past year; dwindling gaming sales, the projected loss of GPU revenue from the Ethereum merger, and US government restrictions on H100 exports to China have all contributed to soured sentiment for this once unstoppable growth story.

But write off Nvidia at your own risk, or so seems the stance of Rosneblatt’s Hans Mosesmann. The 5-star analyst thinks the street is completely underestimating the seismic changes at play.

“Ada Lovelace and compute big brother Hopper will be the biggest GPU launches in GPU history and dare we say the biggest compute launches in the last generation in Silicon Valley,” Mosesmann wrote excitedly. “We get that the Street is a snakebite and may not be in the mood for all the GTC cool stuff that is hugely strategic. Much less internalized what Nvidia is doing with its Omniverse/AI thrust (cloud services, OVX computers, Enterprise S/W, Orin, Thor, and so on and so forth). But long-term investors, in our view, will be rewarded, as in previous cycles.”

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Mosesmann’s confidence is reflected in his buy recommendation and is supported by a street level price target of $320, suggesting the stock will switch hands in a year at a premium of 141%. (To view Mosesmann’s track record, click here)

Mosesmann isn’t the only analyst to be positive for NVDA; the stock has a distribution of 23 to 9 in favor of buy reviews over Holds, giving it an average buy consensus rating. The stock is priced at $132.61 and their average target of $205.74 suggests room for a 55% valuation next year. (View Nvidia’s stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are those of the featured analyst only. The content is for informational purposes only. It is very important to do your own analysis before making any investment.

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