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Nvidia Stock Hits All-Time High Despite Coronavirus Fears

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Nvidia's share price reached an all-time high of $311 (at time of writing) today after Bernstein upgraded the stock to an Outperform rating on Tuesday afternoon.

Bernstein analyst Stacy Rasgon said that not upgrading Nvidia's stock earlier was an "error," Seeking Alpha reported, because of Turing's rising popularity and increased hyperscale cloud spending. She was also said to be excited about the prospect of the Mellanox acquisition--which was valued at $6.9 billion last year--closing soon.

The increased share price might come as a bit of a surprise following Nvidia's warning last week that the Coronavirus outbreak might affect its supply chain. Those fears led it to shave $100 million off its earnings guidance for the first quarter even though is said "the ultimate effect of the coronavirus is difficult to estimate."

Bernstein set a new price target of $360, up from $300, for Nvidia after upgrading its rating. While the company's share price hasn't even approached that number at time of writing--it's mostly bounced around between $310 and $311--that massive bump from Bernstein likely inspired at least some of the stock's gains early this morning.

Nvidia's fortunes seem likely to continue, too, because it's expected to reveal new data center GPUs at GPU Technology Conference (GTC) 2020 at the end of March. Excitement about those new products and their potential to attract more data center customers might inspire shareholders to raise the company's share price even more.

  • bit_user
    This strikes me as weird. They're facing more competition in AI than ever before, with Habana (recently bought by Intel) significantly outperforming their existing GPUs.

    Competition from AMD seems to be picking up, slightly, and Intel is about to enter the fray.

    Plus, figure they're about to lose the entire Chinese market, as China implements its plan to eliminate foreign tech suppliers.

    And self-driving cars? They don't seem to be hitting the mainstream any time soon.

    Considering all of that, I'd have to look at what kind of vested interests this analyst has in the matter. Smells a bit like a case of pump-and-dump.

    As for me, I have no financial stake in either Nvidia or any of their competitors.
    Reply
  • SaulGoodMannnn
    admin said:
    Nvidia's share price reached an all-time high of $311 after being upgraded to an Outperform rating by Bernstein.

    Nvidia Stock Hits All-Time High Despite Coronavirus Fears : Read more
    bit_user said:
    This strikes me as weird. They're facing more competition in AI than ever before, with Habana (recently bought by Intel) significantly outperforming their existing GPUs.

    Competition from AMD seems to be picking up, slightly, and Intel is about to enter the fray.

    Plus, figure they're about to lose the entire Chinese market, as China implements its plan to eliminate foreign tech suppliers.

    And self-driving cars? They don't seem to be hitting the mainstream any time soon.

    Considering all of that, I'd have to look at what kind of vested interests this analyst has in the matter. Smells a bit like a case of pump-and-dump.

    As for me, I have no financial stake in either Nvidia or any of their competitors.

    AMD has zero cards for the enthusiast or high end user...supercomputers (buying thousands of them at a time) are opting for Nvidias high end GPUs and Intel is entering the market but only for enterprise hardware and AMD is basically for the budget builder....with RTX picking up pace the only option for someone who wants to game over 1440p 60hz+ or for companies/universities wanting to do scientific computations, deep learning etc your options are limited to.....you guessed it- Nvidia... and let’s face it when you sell $2,000+ GPUs with a limit of 2 per customer up until this year you’re making good profits. Also self driving cars don’t necessarily mean literally a car that drives itself 100% many vehicles are developing “Tesla like” tech to intergrate into their systems and the best way to do it is use already tested GPUs instead of reinventing the wheel lol. Amazon, google, uber companies etc are both testing self driving cars in the streets of LA, Seattle and other large cities so don’t be surprised if you get your amazon package or food delivery by a unmanned vehicle.
    Reply
  • bit_user
    SaulGoodMannnn said:
    AMD has zero cards for the enthusiast or high end user...
    ...yet. Let's wait until Big Navi (which sounds like it's going to be based on Navi 2, as well).

    However, how much of Nvidia's margins are made up by that market segment?

    SaulGoodMannnn said:
    supercomputers (buying thousands of them at a time) are opting for Nvidias high end GPUs
    Yeah, most, but not all.

    And let's not forget about AMD's big win with Google Stadia. AMD was first to have secure, multi-user GPU virtualization, which is also big for application hosting.

    SaulGoodMannnn said:
    Intel is entering the market but only for enterprise hardware
    That's not accurate. They've announced consumer cards, as well.

    SaulGoodMannnn said:
    with RTX picking up pace
    Huh? You mean the "Super" cards? That's old news, though. Stocks are valued in terms of a company's anticipated performance. The Super cards are already baked into their current numbers.

    SaulGoodMannnn said:
    self driving cars don’t necessarily mean literally a car that drives itself 100% many vehicles are developing “Tesla like” tech to intergrate into their systems and the best way to do it is use already tested GPUs instead of reinventing the wheel
    By the time it becomes a standard feature, we have no idea who will be the dominant supplier. And they're not making a profit on it, today. So, your optimism strikes me as very premature.
    Reply