These are the 10 reasons why NVDA is on its way to $200 When a stock sells off while analysts are not budging – you know something is wrong.
NVDA is acting as if execution risks do not exist.īut they do, and they are never more apparent than right now.
In fact, NVDA is up more than 600% in this period. Of these, NVDA is the only stock up more than 200% since the beginning of 2016. Because traders aren't actually buying the shares it's like "the market is pricing lottery tickets - $160 calls - not an investment in future prospects on NVDA in common stock," Citron said its report.There are about 100 public companies with market caps larger than $100 billion. The white paper points out that the number of call options on Nvidia is exploding in popularity. The stock took off Citi's call, but Citron says the move is not sustainable. When Citi announced their increased target price, it was a 21% upside. The firm increased its target price for the stock to $180, representing an 8.5% upside to the current share price. Meanwhile, Wall Street's biggest Nvidia bull is Citi Research, who says Nvidia chips could be used in large-scale data centers and that more of those centers are being built to keep up with demand in artificial intelligence and virtual reality. "While we are fans of NVDA emerging business in auto, gaming, and AI …have the prospects of these technology doubled in value in 6 months or is this an example of analysts chasing stock price?," Citron's white paper asks. The company is expected to make $6.1 billion in revenue in 2018, compared to $1.9 in revenue expected from other bets. Virtual reality, driverless cars, machine learning and artificial intelligence all run well on GPUs.Ĭitron points out that Nvidia's core business, gaming, is where the focus should be. Growth in the company can be explained partially by an increased demand for powerful graphics processing units worldwide.
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