NVIDIA: “Expensive and Worth It,” Says MKM Partners

By Johanna Bennett Car makers and video games helped visual computing chipmaker Nvidia‘s (NVDA) push fiscal third-quarter financial results past expectations Thursday, and led MKM Partners to upgrade the stock to a Buy. “Expensive and worth it,” read the headline on the note penned by analyst Ian Ing, who earlier this week had cautioned investors on the stock’s valuation. Now he sees the stock climbing to $36. As Ing writes today: NVDA commands some of the highest earnings multiples in semiconductors and is the highest in our coverage. Our applied multiple (24.3x) is near the four-year historical high (26.9x). However, we believe this multiple is reasonable in the context of NVDA seeing “very large markets” and its TAM opportunity having “never been greater.” For example, machine learning could become a…


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