Shares of Nvidia Corp. rallied 1% in premarket trade Wednesday, putting them on track for a sixth-straight gain, after the chip maker was upgraded at SunTrust Robinson Humphrey, which cited continued upside earnings and revenue potential, particularly in the datacenter for artificial intelligence segment. Analyst William Stein raised his rating to buy after being at hold since he started covering the stock in September 2016. He boosted his price target to $177, which is 13.5% above Tuesday’s closing price of $155.88, from $124. Stein acknowledged that he is “not early” in turning bullish on the stock, but said he doesn’t think it’s too late. “While we have been keenly aware of [Nvidia’s] growth opportunities in the datacenter, gaming and automotive end markets in the year since we launched coverage, we’ve under-forecasted the growth potential in these markets,” Stein wrote in a note to clients. “We believe there are still aspects of the company we think are under-appreciated.” The stock had surged 12% over the past 5 sessions, to close Tuesday 2.5% below the June 8 record close of $159.94. The stock has nearly tripled over the past 12 months through Tuesday, while the PHLX Semiconductor Index has run up 50% and the S&P 500 has gained 13%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News