Nvidia: share's weakness a buy opportunity, Jefferies says
(CercleFinance.com) - Jefferies recommends investors buy Nvidia shares, with a target price of 320 dollars, as the chipmaker share has fallen over 4% today after "solid" Q2 results, announcing a guidance that fell short of the consensus.
The broker points out that gaming graphic processors, or GPUs, sales slowed in the past quarter, even though they still increased by 52%, something that is typical ahead of new platform launches.
Indeed, Jefferies expects the company to launch its next generation GPU platform in the third quarter, which it anticipates to be a tailwind over the next 12-18 months.
"We highlight that the last two platform launches produced 41% and 52% revenue growth over the four quarters that followed," the broker, seeing any weakness in the share price as a "buying opportunity."
Copyright (c) 2018 CercleFinance.com. All rights reserved.