Today, analysts are taking a new look at an American chip company and its innovative forays into the metaverse.
Anusuya Lahiri for Benzinga reports Bank of America professional Vivek Arya has raised the target on Nvidia from $275 to $340 per share after a keynote presentation yesterday spiked the company’s stock and revealed that Nvidia has big plans for new virtual worlds. Arya reportedly suggests that $10 billion in gains will generate $1.50 EPS in the next quarter. NVDA reported $1.04 EPS for Q2 in August.
“(Arya) believes Nvidia is ‘uniquely ready’ with its combo of hardware, software, and developer ecosystem to address new technologies across AI, robotics, metaverse, and autos as well as ‘any new markets that materialize,’” Lahiri writes.
Yesterday, Patrick Seitz at Investors.com reported on the cited keynote presentation, where NVDA chief Jensen Huang talked about the Nvidia Omniverse Avatar, a tiny virtual character that could serve as an AI assistant.
Huang also talked about a replicator and deep neural networks combined with Nvidia’s graphics capability. For those who wanted more, in covering the presentation, Seitz also mentions a “digital twin” of the earth.
And that’s not all, either:
“Nvidia also debuted a next-generation networking technology for cloud computing providers and supercomputing centers called Nvidia Quantum-2,” Seitz writes. “Plus, Nvidia announced that it added sports-car maker Lotus, electric-vehicle startup WM Motor, and autonomous driving solutions provider QCraft to the list of companies using its Nvidia Drive Hyperion system for autonomous driving.”
Directly after the keynote presentation, Nvidia’s stock shot up about 3% from $307 to $319.
At market opening this morning NVDA is staying fairly steady, but watch for increases today and the rest of the week.
The news about Nvidia is exciting, but also arrives against the backdrop of critical microchip scarcity that’s driving changes in the automotive industry, and gaming and beyond.
As you look at innovations and everything else, make sure that you factor in microprocessor shortages and how that situation will eventually resolve.