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Today Goldman Sachs upgraded its price target and rating for NVIDIA citing strong performance in the company's primary revenue-generating segment: gaming.
Shares of NVDA closed today up nearly three-and-a-half percent to $178.40 after losing value for three consecutive days.
According to the bank, an investor should see the big three in this order:
NVIDIA (NASDAQ:NVDA)AMD (NASDAQ:AMD)Intel (NASDAQ:INTC)
Goldman raised its price target for NVIDIA from $179 to $192 and maintains a "buy" rating for team green, while it holds a "neutral" rating for and a "sell" rating for Intel.
The story is fairly simple according to GS, NVIDIA should see its gaming division continue to rebound after the 2018 loss of cryptocurrency demand, and the firm believes team green might see a 25% increase in Q4 compared to last year. Further, it believes that NVIDIA's second-largest revenue-generating segment is finally going to begin to a breakthrough in a big way: the data center.
AMD has yet to challenge any of NVIDA's offerings above the 2070 Super level, leaving NVIDIA uncontested at the top tier of performance as we head into the all-important holiday shopping center.
We expect the company to deliver strong sequential growth in FY3Q (Oct) in the Gaming segment supported by the normalization in channel inventory and the launch of its new products.
-Goldman Sachs’ Toshiya Hari
Keep in mind that the October period is NVIDIA's fiscal third quarter. I would be remiss if I did not mention GS has got it wrong before and even admitted to doing so. From my standpoint, it seems the bank sometimes misses the mark when it comes to advanced tech and its analysis of the market, and I can't say which new products it might be referencing in its note above. However, NVIDIA is undoubtedly in a good position currently with no competition in the high end for the foreseeable future.