- Jefferies reiterates a Buy rating on Nvidia (NVDA +3%) with a $300 price target (a 22% upside to Friday’s close) and calls Steven Spielberg’s upcoming “Ready Player One” film a potential catalyst. The film hits U.S. theaters on March 29.
- Characters in the film, which is based on a popular book, escape from a dystopian society using virtual reality. Jefferies thinks this could drive VR headset sales and the headsets involve high-performance chips.
- But analyst Mark Lipacis does see other benefits to Nvidia: “The computing paradigm experiences a tectonic shift every 15 years, and that it is currently in a shift to a 'Parallel Processing – Internet of Things' model. A lot of the demand for increased compute cycles is becoming parallel in nature, like neural networking, gaming, virtual reality and blockchain/cryptocurrency mining."
- And Nvidia isn’t the only company that would benefit from a VR headset boom. Advanced Micro Devices (AMD +0.5%) could become another chip winner. Jefferies has AMD at Buy with a $19 target, a 62% upside.
- Top VR headset developers: Facebook’s (FB -0.3%) Oculus, Google (GOOG, GOOGL), Sony (SNE -2.4%), and Samsung (KS:005930) (OTC:SSNNF, OTC:SSNLF).
- Now read: Nvidia: In Case You're Wrong
Original article