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StockBeat: Nvidia off Lows on Wall Street Upgrade Ahead of Earnings

Investing.com – Nvidia rose slightly Monday, despite overall tech weakness, after some on Wall Street upgraded their outlook on the chipmaker ahead of its quarterly report due later this week.

Deutsche Bank (DE:DBKGn) raised its price target on Nvidia to $190 From $160 and maintained its hold rating on expectations that the chipmaker will continue to maintain the high momentum in its rapid growth sectors.

Nvidia shares were up 0.3%.

"Looking past this quarter/guide, we remain impressed with NVDA's ability to address a wide array of rapidly growing sectors (artificial intelligence, data center, gaming, advanced driver assistance systems/audio-visual, etc.) and expect optimism on these vectors to remain high heading into fiscal 2021," Deutsche analyst Ross Seymore said.

But Seymore tempered expectations for significant upside, warning that even if the chipmaker delivers solid quarterly results later this week, it may only result in an incremental upside as most of the “goodness is already reflected in the shares.”

Deutsche Bank was not the only one on Wall Street talking up the growth prospects of the chipmaker.

UBS lifted its price target on Nvidia to $240 from $195, highlighting the potential growth from the launch of new products next year, which are expected to be in high demand.

"Performance-focused customers like Google (NASDAQ:GOOGL) are waiting for this product, and others are building it into their 2020 road maps both on cloud and HPC/enterprise sides of the business," UBS analyst Timothy Arcuri wrote.

The latest price upgrades on Nvidia from Deutsche and UBS come after others on Wall Street recently turned more bullish amid expectations that a pickup in data center spending will underpin chip sales.

Nvidia is up 56% for the year and reports fiscal third-quarter results on Thursday.

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