StockBeat: Nvidia Climbs as Wall Street Says Growth Story in 'Early Innings'

Investing.com - Nvidia climbed on Wednesday after a Wall Street analyst backed the chipmaker to leave its rivals behind as its growth story remains in the “early innings.”

Benchmark analyst Ruben Roy initiated coverage on the stock with a buy rating and a $210 price target, suggesting upside of more than 25% from its closing price of $167.87 a day earlier.

Nvidia (NASDAQ:NVDA) climbed 2.1% in afternoon trading. It's up 28.4% on the year and 4.4% in the third quarter.

Nvidia is "uniquely positioned" to grow at a faster compound annual rate than its peers and is in the "early innings" of its growth story due to the "increasing use of GPUs across a diverse set of growth markets,” Roy said.

Earlier this week, Microsoft (NASDAQ:MSFT) said it would use Nvidia’s RTX video graphics units to spice up the visuals of its popular world-building game "Minecraft."

Semiconductors have been a hot group this year. The Philadelphia Semiconductor Index was up nearly 1% on the day, taking its gains for the year so far to about 31%.

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