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Nvidia (NVDA) – Get Report shares gained on Tuesday after another Wall Street analyst lifted his price target to near $1,000 amid expectations of continued strong demand for video graphics cards and related semiconductors that are used for both gaming and mining cryptocurrencies.
Keybanc analyst John Vinh lifted his one-year price target on Nvidia to $950 from $775, following in the footsteps of BMO Capital Markets analyst Ambrish Srivastava, who just last Thursday lifted his own price target on the chip titan to a Wall Street high of $1,000 from $975 and affirmed an outperform rating.
Analysts have piled on the praise for Nvidia since the company’s first-quarter results, which came in better than expected amid strength in so-called hyperscale data center demand, which includes demand for its graphics cards and chips using for both gaming and crypto mining.
Even before then, analysts were touting Nvidia’s performance amid strong demand for its gaming graphics cards, which surged through the pandemic and stay-at-home orders that boosted demand for at-home entertainment like video games, compounded by the ongoing chip shortage that has boosted demand – and prices – for the chips and the cards themselves.
At the same time, surging prices for Bitcoin, Ethereum and other cryptocurrencies this year also have fueled demand. Crypto miners use graphics processing units, or GPUs, to mine currencies such as Bitcoin and Ethereum. Nvidia’s latest RTX 30 series, launched last year, has proven particularly popular with miners.
For its fiscal second quarter which ends in July, Nvidia expects revenue of $6.3 billion at the midpoint, well above FactSet’s consensus estimates of $5.47 billion, driven by growth across all its business segments, led by crypto, data center, and gaming.
In May, Nvidia announced a 4-for-1 stock split to make it easier for employees and outside investors to buy shares.
Shares of Nvidia were up 0.47% at $824.30 in premarket trading Tuesday. The stock has gained more than 16% in the past month and more than 56% since the start of the year.
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