Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

NVIDIA's AI solutions will continue to penetrate the market - Piper Sandler

Published 29/03/2023, 17:18
Updated 29/03/2023, 17:18
© Reuters.

© Reuters.

By Sam Boughedda

Piper Sandler analysts raised the firm's price target on NVIDIA (NASDAQ:NVDA) to $300 from $275 per share, maintaining an Overweight rating on the stock in a note Wednesday, telling investors the company has created a "tremendous TAM opportunity."

The analysts explained that they analyzed Nvidia's software business and examined the "3 strategic pillars" of the software franchise, namely AI Enterprise, Omniverse, and DRIVE.

As a result, Piper Sandler believes Nvidia has single-handedly created a TAM opportunity between its hardware and software businesses.

"In total, the software verticals shake out to over a third (>$300B) of NVDA's $1T TAM," wrote the analysts. "In our view, the software businesses are highly value added to NVDA's customers and also likely higher growth with more profitability metrics."

"Each of the 3 strategic software businesses help customers transition into new transformative areas that drive either revenues or dramatic levels of cost savings," added the analysts. "For example, within Omniverse, BMW has been running a digital factory for 2 years, which has improved efficiencies and driven cost savings. Examples such as BMW's case give us confidence that Nvidia's AI solutions will continue to penetrate the enterprise market."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.