Nvidia Shares Can Jump 30%, Analyst Says

Nvidia (NVDA: Nasdaq)By MKM Partners ($27.71; Nov 6, 2015)We are upgrading Nvidia shares to Buy from Neutral, and establishing a $36 price target (24.3x our GAAP EPS estimate of $1.48). Nvidia reported a $0.20 EPS beat, roughly half due to revenues well above the guided range (GPUs) and $0.09 due to taxes (reserve release). Participating in paradigm changes: We see a sustainable growth trajectory, given its positioning to lead in significant paradigm changes favoring more valuable semiconductor solutions: automotive evolving from driver assist to autonomous driving, gaming transitioning to virtual reality and professional or social E-sports, and cloud computing increasingly using GPU accelerators for machine learning. The stock is expensive, but opportunities have never been greater: Nvidia (ticker: NVDA NVDA 13.929989173583543% NVIDIA Corp. U.S.: Nasdaq USD31.57 3.86 13.929989173583543% /Date(1446845379102-0600)/ Volume…


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