Nvidia stock gains after Needham boosts target to new Street high of $700

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Shares of Nvidia Corp. are up more than 3% in premarket trading Tuesday after Needham analyst Rajvindra Gill upped his price target on the stock to $700 from $600. His new target is the highest listed on FactSet. Gill is increasingly upbeat on Nvidia’s prospects after the company announced over the weekend that it would be acquiring Arm from Softbank Group Corp. in a deal valued at $40 billion. “Strategically, we believe the Nvidia-Arm combination will create the leading AI computing platform in the semiconductor industry,” Gill wrote in his note to clients. “The combination of three processors under one house – GPUs for accelerated computing, NPUs for networking and security processing, and CPUs for low latency, single thread predictable processing – positions NVDA to become the leading AI platform in the industry, in our view.” He argued that a “multi-processor and multi-architecture framework will be paramount” in dealing with the next generation of artificial-intelligence workloads. Nvidia shares have gained 40% over the past three months as the S&P 500 has risen 10%.
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