What happened
Semiconductor star Nvidia (NVDA 1.58%) is having another great day on Wednesday, with its stock up 5.5% as of 10:55 a.m. ET.
You can thank Wells Fargo for that.
Image source: Getty Images.
So what
As the date of Nvidia's Graphics Technology Conference 2022 (GTC 2022) gets closer (it begins on Monday), a Wells Fargo analyst has decided that now's an opportune time to recommend buying Nvidia stock. In a note out this morning, analyst Christopher Harvey emphasizes data center momentum, GeForce gaming GPUs, and automotive chips as three big reasons to own Nvidia stock, reports StreetInsider.com.
When GTC arrives next week, Harvey suggests paying particular attention to news on:
- Nvidia's new Hopper data center GPUs, which he thinks could offer a "significant performance gain."
- Ada Lovelace GeForce GPUs, which he believes will enjoy a "supply ramp w/ TSMC in 2H22."
- The analyst also wants to check on the "installed base" number on GeForce gaming GPUs, viewing this as an indication of the size of the "upgrade opportunity longevity" as GeForce users will presumably want to stick with this brand of chip as it gets better and better over time.
- And he wants to see if the company's revenue stream from automobile chips might improve from $8 billion over the next six years, to perhaps as much as $10 billion.
Oh, and don't forget about the Nvidia Omniverse (i.e., metaverse), GeForce Now online gaming, and artificial intelligence software.
Now what
Are you having trouble keeping track of all the many things the note says you should try to keep track of? At the risk of mixing some metaphors, the analyst is saying that Nvidia now has more irons in the fire than you can shake a stick at -- but it all adds up to some very big opportunities for Nvidia stock going forward.
The upshot, though, is that he believes Nvidia could nearly triple its per-share profits to $9 or even $10 by 2024. No wonder he rates Nvidia stock as overweight, with a $370 price target.
