Benchmark Gives Nvidia a Buy Rating

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  • Investment firm cites company’s unique position.

    On Wednesday, a bullish report by Benchmark analyst Ruben Roy cited Nvidia (NVDA) as a company uniquely positioned to grow at a faster rate than its peers in the graphics processing space. The report cites the “increasing use of GPUs across a diverse set of growth markets.”

    The buy rating on the company sets a price target of $210 on shares, a 21 percent increase over the current price of $173.

    Nvidia is an industry leader in graphics processing units—GPUs. The firm has largely been known for creating GPUs for gaming. However, new applications for high-end, next generation processing for technologies such as self-driving cars and cryptocurrency mining will offer the company a number of growth opportunities in the future, including ones that are off the market right now.

    Action to take: We like Nvidia’s positioning as well—having previously recommended a call option ahead of earnings last week that has already done well.

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  • We see further upside in shares, and, over time, Nvidia can continue to move substantially higher as technologies requiring GPUs. This is a company worth owning for the long haul, particularly if the company is, in the word of Benchmark, in the “early innings” of future growth.