Graphics-chip maker Nvidia (NVDA) scored a price-target increase on its stock Friday from investment bank Citi for its prospects in artificial intelligence applications.
XAutoplay: On | OffCiti analyst Atif Malik reiterated his buy rating on Nvidia stock and upped his price target to 210 from 185. Nvidia stock ended the regular trading day up 1.8% to 178.77 on the stock market today.
Malik sees Nvidia selling more graphics processing units for data center use, including artificial intelligence applications. He believes Nvidia will play a larger role in smart cities, self-driving cars and robotics.
Alibaba, Baidu and Tencent are adopting Nvidia’s Volta GPU computing platform for their data centers and cloud-service infrastructures. They hope to use Nvidia’s technology to develop artificial intelligence for enterprise and consumer applications.
IBD’S TAKE: The IBD 50 list of top-performing growth stocks includes six companies from the chip sector. Nvidia is currently ranked No. 10 on the list.
Last week, Nvidia shares were shaken by a report that rival chipmaker Advanced Micro Devices (AMD) was working with luxury electric-car maker Tesla (TSLA) to develop processors for autonomous vehicles. Nvidia has been a key chip supplier to Tesla.
Tesla also reportedly is looking to source more chips from Intel (INTC) for its automotive infotainment systems.
Needham analyst Rajvindra Gill said the threats posed by AMD and Intel to Nvidia have been “overblown.”
“Tesla’s unit volumes are insignificant to Nvidia’s total automotive market opportunity,” which is mostly in processors for autonomous driving, Gill said.
In a report Thursday, he reiterated his buy rating on Nvidia with a price target of 200.