Graphics-chip maker Nvidia ( NVDA ) earned high marks from Wall Street analysts for its presentations at the SC17 supercomputing conference in Denver this week.
In a report, RBC Capital Markets analyst Mitch Steves said he is "incrementally more bullish" on Nvidia's prospects in the data center, gaming and automotive markets after the chipmaker's investor update at the show. He reiterated his outperform rating on Nvidia stock and price target of 240.
Nvidia shares added 0.7% to close at 214.18 on the stock market today .
At SC17, Nvidia said its Tesla V100 graphics processing unit, based on the company's Volta architecture, has been chosen by every major cloud computing company for artificial intelligence and high-performance computing applications.
"Volta is the world's most powerful platform for AI and HPC, and will allow the world's top minds in scientific research to push the limit on what's possible in areas like drug discovery, alternative fuel sources and predicting natural disasters," Nvidia Chief Executive Jensen Huang said in a news release . "With Volta now in data centers and clouds around the world, a new wave of innovation is underway that will have an incredible impact across society."
Cloud computing providers such as Alibaba ( BABA ) Cloud, Amazon ( AMZN ) Web Services, Baidu ( BIDU ) Cloud, Microsoft ( MSFT ) Azure, Oracle (ORCL) Cloud and Tencent (TCEHY) Cloud have announced Volta-based cloud services, Nvidia said.
IBD'S TAKE: Nvidia is currently ranked No. 8 on the IBD 50 list of top-performing growth stocks.
B. Riley FBR analyst Craig Ellis said he is left more confident in Nvidia's data center growth after the company's presentations. Nvidia estimates the total addressable market in data center chips to be worth $30 billion.
In a note to clients, Ellis maintained his buy rating on Nvidia and stock price target of 270.
Rosenblatt Securities analyst Hans Mosesmann also came away from the show with a good feeling about Nvidia. He reiterated his buy rating on the stock.
"GPU (graphics processing unit) acceleration trends in AI/HPC and data center are secular, powerful and devastating for CPU (central processing unit) incumbents," Mosesmann said in a report. "Volta is at the early stages of an inflection point with broad implications for the industry and investors."
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