Barclay’s has upgraded Nvidia to overweight. Nvidia stock is up 117% as compared to last year and the company now ranks number 2 in the entire S&P 500 index. The company has been doing pretty well in the market and has built an ecosystem around autonomous vehicles as well as pulled off some big moves in the graphics departments. According to analyst Blayne Curtis:
“We obviously are late to the party after two substantial years of outperformance but after taking a clean look at the AI landscape, we believe Nvidia is an overweight. Once again, ecosystem does matter and we believe that Nvidia has out a large moat around certain markets, like autos, and aims to create a similar ecosystem in robots,”
Curtis also bumped up the Nvidia Stock price to $228 which is a 25% increase which can be expected in the next 12 months. While the company will surely gain traction over the upcoming several years as companies integrate autonomous robots as well as AI, the analysts noticed that the growth is due to the gaming segment as more and more people are joining multiplayer online gaming communities.
Fortnite and PUBG happen to play a huge role in all this not to mention Nvidia Volta that is expected to arrive this year. Nvidia has been keeping silent about the upcoming architecture and its applications in gaming but it should provide a drastic upgrade as compared to Pascal.
“As opposed to last year’s lack of gaming launches, 2018 has already brought on titles like PlayerUnknown’s Battlegrounds and Fortnite, which are driving a revitalized cycle in gaming communities. Nvidia is also gaining share, which should be bolstered by the launch of Volta later this year and should have plenty of runway.”
Nvidia Volta has the potential to increase potential profits but that is something that we will have to wait and see. For more information regarding Nvidia stock and their gaming segment stay tuned to SegmentNext.
Let us know what you think about Nvidia stock increasing after Barclay upgrade.