Highflying Artificial Intelligence Chip Play Seen Flying Even Higher – Investor’s Business Daily

Highflying chip stock Nvidia (NVDA) received a bullish report on Monday from investment bank Canaccord Genuity forits booming data-center processor business.

XAutoplay: On | OffCanaccord analyst Matthew Ramsay reiterated his buy rating on Nvidia and raised his price target on the stock to 180 from 155.

Nvidia shares fell1.2% to close at 166.15 on the stock market today. It droppedan additional 1.4% in after-hours trading Monday. Nvidia hit an all-time high of 169.30 on Friday.

Nvidia has diversified from graphics processors for PCs and gaming consoles into high-end computing processors for data centers, artificial intelligence, machine learning and self-driving cars.

"Our overall bullish thesis on GPU (graphics processing unit) computing continues to accelerate (particularly data center) and we believe Nvidia's emergence as a platform computing company (of which gaming is just one important piece) is now cemented," Ramsay said in a note to clients.

IBD'S TAKE: Nvidia is one of eight chip industry companies on the IBD 50 list of top-performing growth stocks. It is currently ranked No. 6.

Nvidia should be able to hold its own against increased competition in the data-center market from Intel (INTC) and Advanced Micro Devices (AMD), Ramsay said.

"We remain very impressed how quickly Nvidia has segmented the product roadmap to provide more application-specific silicon to both the quickly evolving data-center and automotive markets," he said.

On Saturday,at the annual Computer Vision and Pattern Recognition conference in Honolulu, Nvidia Chief ExecutiveJensen Huang unveil the company's latest GPU, the Nvidia Tesla V100, based on its Volta architecture.

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Highflying Artificial Intelligence Chip Play Seen Flying Even Higher - Investor's Business Daily