By Yasin Ebrahim
Investing.com – Nvidia climbed on Monday as one analyst bet the chipmaker's shares are set to rally as much as 20% on the back of a pick-up data center demand and launch of new products.
NVIDIA (NASDAQ:NVDA) jumped 3%.
BMO upgraded its rating on Nvidia to outperform from market perform and raised its price target on the stock to $425 from $285, indicating about 20% upside from current prices.
"While there is no one single event we can point to which has led us to change our thinking, the continued execution on the data center side, along with the latest product rollout, has helped," BMO said.
The positive update comes just a week after the company, at its GPU Technology Conference (GTC), provided numerous updates and unveiled its new graphics architecture, Ampere, which succeeded Volta, the GPU architecture that supported a variety of artificial intelligence accelerators in the data center and the cloud.
"We were positively surprised by the numerous announcements at the NVDA GPU event on May 14. We continue to believe that NVDA should be the best performing large cap semi-stock in calendar 2020," RBC said in a note following Nvidia's GTC keynote last week.