NVidia $NVDA Earnings Ahead, Machine Learning, AI, Gaming Graphics

Helmholtz Watson

Merrill Lynch reiterated Nvidia with a Buy rating and raised its price objective to $210 from $185.

Potential upside in the second half of 2017 and into 2018, driven by:

– Data center capex acceleration to 31% half-over-half in the second half and 21% year over year in 2018, versus a −7% half-over-half decline in the first half.
– New independent benchmarks for upcoming Volta products reaffirm Nvidia’s competitive moat.
– Updated gaming surveys show large upgrade opportunity with premium-priced cards, among 200 million deployed gamer-base.
– Headroom for increased investor interest, with only 22% ownership among U.S. large-cap fund managers versus 28% to 35% ownership of large-cap semi peers.[/li]