Nvidia’s stock rises toward a record after Susquehanna’s Rolland boosts target to Street-high $540

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Shares of Nvidia Corp. rose 1.3% toward a record in premarket trading Monday, after Susquehanna analyst Christopher Rolland raised his price target to a Street high $540 from $450, saying the expected launch Ampere gaming graphics processing units (GPUs) in September will offset an anticipated second-half slowdown in datacenters and help the company lift its outlook. Rolland reiterated the positive rating he’s had on the stock since November 2018. “While Intel and others prognosticate a 2H data center slowdown, we believe the setup remains favorable for Nvidia, helped by the relatively new launch of the A100,” Rolland wrote in a note to clients. He said Ampere is likely to contribute to Nvidia’s October quarter, a likely tailwind for guidance. Rolland’s stock price target is now the highest of the 40 analysts surveyed by FactSet, with next highest at $510, and the average target at $426.82. Separately, Oppenheimer’s Rick Schafer raised his target Monday to $500 from $400, saying he expects “strong” fiscal second-quarter results when Nvidia reports earnings after the Aug. 19 closing bell. The stock has rallied 36.2% over the past three months through Friday, while the PHLX Semiconductor Index has advanced 29.4% and the S&P 500 has gained 17.8%.
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