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Investing.com - TD Cowen has reiterated its Buy rating and $235.00 price target on Nvidia stock (NASDAQ:NVDA) following the company’s announcement of a $5 billion investment in Intel. The target aligns with the broader analyst consensus, as InvestingPro data shows 29 analysts recently revised their earnings estimates upward, with price targets ranging from $100 to $270.
The strategic collaboration aims to combine Nvidia’s AI and accelerated computing capabilities with Intel’s CPU technology and x86 ecosystem, spanning both AI and PC markets.
According to TD Cowen, the partnership will focus on creating custom datacenter solutions and PC products that leverage Nvidia’s NVLink and IP stack alongside Intel’s processor architectures.
The investment firm views the announcement as "a win-win for both Nvidia and Intel," while representing "a manageable headline risk" for AMD and Arm, with AMD facing more exposure in the PC segment than datacenter, and Arm experiencing the opposite situation.
TD Cowen characterized the investment as "low-risk optionality" for Nvidia while providing "an AI/PC lifeline for Intel," though the firm noted the "wide-ranging potential implications" of the partnership "will take time to play out."
In other recent news, Nvidia has announced a $5 billion investment in Intel, focusing on collaboration in data centers and integrating Nvidia’s RTX GPU technology into Intel’s PC platform. This move has prompted Piper Sandler to maintain an Overweight rating and a $225 price target on Nvidia. Similarly, Bernstein has reiterated an Outperform rating with the same price target, suggesting that the investment does not signal a shift from Nvidia’s reliance on Taiwan Semiconductor Manufacturing Company. Meanwhile, Samsung Electronics has successfully passed Nvidia’s qualification test for its 12-layer HBM3E chip, marking a significant milestone approximately 18 months after the chip’s development. Additionally, Nvidia plans to invest $500 million in the UK autonomous driving firm Wayve, as indicated by a signed letter of intent. This potential investment is part of Wayve’s upcoming funding round, supporting its expansion in markets like Germany and Japan. These developments highlight Nvidia’s strategic investments and collaborations in the semiconductor and technology sectors.
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