Graphics-chip maker Nvidia (NVDA) received a price-target hike from a Wall Street firm on Monday, four days ahead of its fiscal third-quarter earnings report.
XAutoplay: On | OffB. Riley FBR analyst Craig Ellis reiterated his buy rating on Nvidia and raised his price target on the stock to 250 from 200.
Nvidia shares were up 0.4%, near 209.40, in afternoon trading on the stock market today. Shares was down earlier in the session on news that rivals Advanced Micro Devices (AMD) and Intel (INTC) are teaming up against Nvidia with a jointly developed processor for high-performance notebook PCs.
Santa Clara, Calif.-based Nvidia is scheduled to report results for its fiscal third-quarter ended Oct. 29 after the market close on Thursday.
After three quarters of triple-digit growth in earnings per share, Nvidia is seen posting more modest returns with its latest financial results. Analysts expect Nvidia to earn 94 cents a share, up 13% year over year, on sales of $2.36 billion, up 18%, in the third quarter.
For its fiscal fourth quarter, Wall Street is modeling Nvidia to earn 97 cents a share, down 2%, on sales of $2.43 billion, up 12%.
IBD’S TAKE: Nvidia is currently ranked No. 6 on the IBD 50 list of top-performing growth stocks.
Ellis expects Nvidia to beat consensus estimates in the October-quarter thanks to strong sales of chips for gaming devices and data centers.
Nvidia’s data-center business is being driven by three factors: availability of its Volta graphics-processing units for traditional server customers and “white box” equipment makers in China and Taiwan, plus “a pair of huge U.S. government supercomputer programs should be evident,” Ellis said.
In gaming chips, Nvidia is seeing strong end-demand for gaming notebook PCs, Ellis said.
This post was originally published on *this site*