Analysts at Jefferies gave an optimistic outlook on chipmaker Nvidia’s prospects.
The analysts reiterated its buy rating on Nvidia, with a price target of $255, representing an upside of more than 12%.
According to the Jefferies analysts, Nvidia has continued strength in data center business and gaming business . Training and inferencing solutions for conversational AI applications, and the adoption of RTX GPUs by game titles were cited by the analysts as major drivers of growth.
The analysts also mentioned that Nvidia is benefitting from the development over the past decade of the ecosystem with GPU processors, CUDA software stack, and domain-specific application libraries. These capabilities are helping the company get an edge over its competitors in the AI/Neural Networking space, as indicated by the Jefferies analysts.