Rosenblatt Securities is getting more bullish on Nvidia stock, predicting solid demand for the company’s graphic chips in the coming quarters.
Nvidia stock (ticker: NVDA) has risen more than 50% in 2019 as investors anticipate a chip-business turnaround. In August, the chip maker reported better-than-expected earnings but offered a mixed outlook for the October quarter.
“While mid-to-low end PC CPU datapoints are mixed, higher end PC trends are solid with supply chain discrete GPU [graphics processing unit] trends seasonally strong for both Nvidia and AMD, ” Rosenblatt Securities analyst Hans Mosesmann wrote on Tuesday. “We continue to see Nvidia in a secular pole position in next gen compute architectures.”
Nvidia stock was up 0.3% to $211.15 on Tuesday. The company is scheduled to report its third-quarter results on Nov. 14.
The analyst said his industry checks point to a “solid recovery” in Nvidia’s January quarter. He also predicts good demand for the company’s data center products through the first half of next year.
Other Wall Street analysts are also positive on Nvidia. About 68% have ratings of Buy or the equivalent on the stock, while 24% have Hold ratings, according to FactSet.
Mosesmann raised his Nvidia price target to $240 from $180. He has a Buy rating on the stock.