Nvidia’s stock rises after Susquehanna analyst boosts price target ahead of earnings

/ / News

Shares of Nvidia Corp. rose 1.1% in premarket trading Monday, after Susquehanna analyst Christopher Rolland raised his price target by 9% two days before the graphics chips maker is scheduled to report fiscal third-quarter results, saying investors should look through any supply disruptions to continued strength in gaming and data center markets. Rolland raised his price target to $610 from $560, while reiterating the positive rating he’s had on the stock for the past two years. “[W]e acknowledge the possibility of shortages for Ampere in C3Q20, but encourage investors to look past the near-term supply disruption and toward the long-term, multi-dimensional growth story that should continue to play out into C4Q, early 2021, and beyond,” Rolland wrote in a note to clients. Supply limitations aside, Rolland said evidence suggests Nvidia is increasing aftermarket GPU market share and average selling prices. The stock, which has pulled back 8.7% since closing at a record $582.48 on Nov. 6, has more than doubled (up 126.0%) year to date through Friday, while the PHLX Semiconductor Index has rallied 35.6% and the S&P 500 has gained 11.0%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.