The technology firm, NVIDIA Corp. (NASDAQ: NVDA) was only $67.77 per share right before its quarterly earnings on November 10th. Right after their reported earnings of $ 0.83 EPS vs. the consensus at $ 0.56, NVDA quickly shot up by roughly 25%.
Today, both Mizuho and Goldan Sach’s raised its price targets in early trading which helped NVDA gain nearly 3% in premarket and open at $104.58 per share. Mizuho raised its price target to $115.00 per share from $80.00 per share meanwhile Goldman Sach’s raised its price target to $129.00 per share from $92.00 per share.
Hari wrote that Nvidia is a “Unique growth story in semis” mainly because of the trends in virtual reality, machine learning, and automotive electronics. Hari’s recent discussions with people in the technology industry suggests that the machine learning and artificial intelligence fields indicate a market of $5 billion to $10 billion. He thinks that Nvidia will obtain only 4% of that market by 2018, versus 20% for Intel Corp. (NASDAQ: INTC). Nvidia almost has a 90% share of the market for chips for “training,” which is a part of the machine learning market.