I'll have to explain that remark after Christmas.
The stock is trading at $104.82 up $3.19 (+3.14%) after hitting another all-time high at $106.13.
First up, StreetInsider:
Goldman Sachs Sees 27% Upside in NVIDIA (NVDA) and Adds Stock to Conviction Buy List
(Updated - December 20, 2016 9:05 AM EST)
Goldman Sachs upgraded NVIDIA (NASDAQ: NVDA) from Buy to Conviction Buy with a price target of $129 (prior $92), implying upside of 27%. 2018 and 19 EPS estimates were increased by 18% and 33% to $3.41/$5.14 from $2.88/$3.86. Analyst Toshiya Hari noted that the company was levered to secular growth.
"We continue to view NVDA as a unique growth story in semis, levered to positive secular trends in gaming, VR (virtual reality), AI (artificial intelligence)/ML (machine learning) and automotive. Note our revised FY18/19 EPS estimates are 26%/57% above the Street, respectively, and we expect estimate revisions to serve as a positive catalyst for the stock in the coming quarters," said Hari.
The analyst added, "We update our assumptions for Nvidia’s data center business given our view that 1) AI/ML capacity additions will drive TAM expansion; 2) Nvidia continues to leverage its position to gain greater share of the ML hardware TAM; and 3) competition continues to face high barriers to entry with new entrants not expected until the mid-2017/2018 timeframe....MORE
And from Barron's Tech Trader Daily:
Nvidia: Long Lead Over Intel, Startups in Machine Learning, Says Goldman
Shares of Nvidia (NVDA) are up $4.09, or 4%, at $105.72, after Goldman Sachs’s Toshiya Hari this morning elected the stock to the firm’s “Conviction Buy List,” and raised the price target on the stock to $129 from $92, writing that the company is a “unique growth story in semis” because of trends in gaming, virtual reality, and machine learning, as well as automotive electronics.
Hari believes Nvidia will continue to benefit from machine learning build-out at cloud computing giants, given that “competition continues to face high barriers to entry with new entrants not expected until the mid-2017/2018 timeframe.”
Hari’s discussions recently with people in industry suggest the machine learning, and artificial intelligence, fields, imply a total addressable market of $5 billion to $10 billion. Hari models Nvidia “capturing” only 4% of that market by 2018, versus 20% for Intel (INTC)....MORE