NVIDIA Rating Raised Due To Switch Demand
Despite the massive tech stock sell-off last week until during Monday’s session due to the sudden decline in Apple shares, NVIDIA shares are still projected to hit new highs after its stock rallied more than 3% last week on Bank of America and Argus’ upgrade on Nvidia’s price target.
The company who was the best performing stock last year in the S&P 500 currently holds a bullish position among investors due to the positive performance of the company’s semiconductor business as well as its other products and services.
Goldman Sachs Rating
Due to Nintendo’s success upon the release of its latest console the Nintendo Switch, Goldman Sachs raised its fiscal rating for Nvidia’s earnings from 2018 until 2020 by 1.4%. Nintendo was able to sell more than 2.7 million Switch units all over the world just a month after the release of the console.
The Nintendo Switch is powered by Nvidia’s custom Tegra processor which includes a Nvidia GPU based on the same architecture as the top performing GeForce gaming graphics card all over the world.
Goldman Sachs also raised its estimates for the sales of Nintendo Switch for the fiscal year 2018 to 2018 from 6.5 million and 7.5 million to 15.2 million to 15.5 million which would mean more demand for Nvidia’s Tegra processor.
Nvidia’s shares have risen by more than 600% for the past three years and is set to outperform estimates further. The company’s gaming, data center, and auto ventures has also been forecasted to grow further and would become one of the company’s main revenue drivers during the last two quarters of the year until 2018. The company also has been receiving a steady demand for artificial intelligence and machine learning projects under the datacenter business.
Ongoing Nintendo Switch Success
Amidst the rising success of the Nintendo Switch, the company announced a new wave of games that is set to be available to the console in the coming months. The company also announced its plans to create remakes of its classic Nintendo games such as Pokemon and Metroid while others will be sequels to the latest or more updated games.
According to Nintendo America president and chief operating officer, the company intends to place every high-quality game there is to give the console’s users a chance to play it on the Nintendo Switch. Aside from this, the company also wants to add a series of third-party games to the company during the next release of Switch games.
You must be armed to the teeth with the best and most useful knowledge in trading. Visit Bworld Review to turn yourself into a sharper and wiser investor!