Weighing Up Analyst Upgrades
Goldman Sachs was the latest investment house to join the bullish NVDA bandwagon. This comes after Evercore and Loop capital recently upgraded NVDA stock from a hold to ‘buy’ rating and set price targets of $120 and $109. Goldman Sach’s analyst Toshiya Hari considers Nvidia as a “unique growth story in semis”. They have raised the price target on NVDA stock to $129 from $92. It has been one of the highest price targets set, with an upside of more than 22% from its last traded price on December 21.
As for valuation, Barrons reported:
Hari thinks the stock can “easily grow into” a P/E of 30 times the January 2018 earnings estimate.
The trends in gaming, virtual reality, and machine learning, as well as automotive electronics, were behind Goldman Sachs’ rating upgrade. With analyst upgrades coming in droves for NVDA stock, it is a clear indication that there is a huge upside potential left. The ever increasing price targets like this one also highlight that a repeat of the 2016 performance may be difficult but NVDA stock looks set to deliver even in 2017. The price targets will keep increasing as more positive data comes out on how well Nvidia executes its plans in order to realize all the opportunities ahead of it. (See Also: Advanced Micro (NASDAQ:AMD) Devices, Inc: Is AMD Stock Set To Skyrocket After Ryzen Release?)
Fellow Amigobulls author Virendra throws light on whether fundamentals back the bullish stance on Nvidia stock even at its all-time highs in his recent article.
Putting It All Together
With NVIDIA Corporation (NASDAQ:NVDA) making deep inroads into the AI and automotive segment also, it is faced with a couple of multi-billion dollar opportunities and seems to be making all the right moves to tap the same. The opportunity in VR is mammoth. With also its closest competitor Advanced Micro Devices, Inc. (NASDAQ:AMD) (2) still far-off in gaming GPU market share, it is looking to capitalize on this with some exciting new products. Add the spurt of analyst upgrades to the revenue potential in the VR gaming space, this is really a great time to be bullish on NVDA stock. Given the multi-billion dollar revenue opportunities, Nvidia’s business growth may go to another level and so will its stock in 2017. As an investor, it is best to stay invested in NVDA stock and pounce on any pullbacks to buy more.
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The article Will NVIDIA Corporation (NVDA) Stock Continue To Surge Higher In 2017? originally appeared on amigobulls.com. Watch our analysis video on NVDA
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