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Cowen analysts raised the price target on Nvidia (NASDAQ:NVDA) to $220 from the prior $200 and included the stock in the firm’s “Best Idea for 2023” list.
They reminded investors that Nvidia is “the leader in accelerated compute and the key enabler for AI across vertical industries – full stop.” Hence, investors should pay less attention to “when” is the right time to buy Nvidia stock and, instead, buy it “now.”
“Longer term, we believe NVIDIA is the leader in accelerated compute, and maintains wide & deep technological moats. It commands diverse underlying growth vectors, underpinning its transformation from a GPU hardware company to an accelerated computing HW/ SW platform provider,” the analysts said in a client note.
Their three key points that back Nvidia’s top-pick designation are:
“In our view, investors under-appreciate (1) how early we are in AI penetration, and the ability for NVIDIA to create new markets/ use cases through product innovation (both hardware and software); and (2) the ability for the company to continue to expand ASPs as AI performance scales super-linearly. The combination of these drives our above-consensus estimates, particularly in Datacenter,” the analysts added.
Nvidia shares are up over 0.5% today.
