Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Stockbeat: Nvidia Rallies on RBC Price Hike as Intel Touts Data Center Comeback

Stock Markets Oct 25, 2019 01:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
INTC
+0.43%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NVDA
-2.81%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - Nvidia (NASDAQ:NVDA) was riding high on Friday following a target-price hike from RBC after concerns about weakness in data-center spending were swept away by Intel's (NASDAQ:INTC) upbeat third-quarter report and guidance.

“Data center came back much more strongly than even we anticipated this quarter,” Intel Chief Financial Officer George Davis told Reuters in an interview after the release of Intel’s third-quarter results.

That was music to the ears of many Nvidia investors and analysts alike, as data center segment sales make up more than quarter of the chipmaker’s overall revenue. Nvidia revenue hit $11.7 billion in its 2018-2019 fiscal year and looks as if it will top $12 billion this year.

Pointing to Intel’s comments on higher-than-expected demand in its data center business, which focuses on server chips, RBC lifted its price target on Nvidia to $251 to $217, forecasting that the chipmaker will likely experience higher growth relative to CPU server demand.

Nvidia surged more than 3.8% higher.

“Nvidia will experience a return to growth as utilization of GPUs (graphics processing units) in the Data Center have officially improved and are no longer running below normal,” RBC said in a note to clients.

The anticipated return for data center growth comes just as U.S.-China relations are seemingly on the mend.

The United States and China are close to finalizing some sections of their "phase one" trade agreement after a phone call between both trade teams, CNBC reported on Friday, citing a statement from the Office of the U.S. Trade Representative.

RBC also said investors were too cautious on Nvidia’s gaming business, which still makes up the bulk of revenue. That echoed earlier sentiments from some of its peers on Wall Street.

Earlier this month, Evercore ISI raised its price target on Nvida to $225 from $185, on the back of expectations for a ramp up in gaming demand and a recovery in the data center division, driven by an anticipated product refresh.

Nvidia is up about 53% so far this year and currently has an average price target of $193.10, according to consensus estimates from Investing.com.

Stockbeat: Nvidia Rallies on RBC Price Hike as Intel Touts Data Center Comeback
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email