Phillip Capital analysts upgraded the rating on Nvidia (NASDAQ:NVDA) shares to Buy from Accumulate with a price target of $645 per share, an increase of $205 compared to the prior target.
Analysts made a move after “blowout results and guidance” that Nvidia delivered last week. The second consecutive blowout earnings report puts Nvidia in “market monopoly” mode, say analysts.
The company's Graphics Processing Units (GPUs) are integral components in nearly 70% of the world's top 500 supercomputers, the analysts note.
“We believe NVDA’s entry into the CPU market will threaten the market share of the two leading CPU makers. This is mainly because Grace could potentially enable a more optimised performance of NVDA GPUs, compared to those of the competitors,” they said.
Nvidia shares are up almost 1% in pre-market Monday.