By Dhirendra Tripathi
Investing.com – Nvidia (NASDAQ:NVDA) shares were up more than 5% Thursday, boosted by Jefferies' (NYSE:JEF)’ revised target of $854 for the stock, an upside of approximately 14% even after accounting for the session’s uptick.
“We see Nvidia as a major beneficiary of the 4th tectonic shift in computing, in which parallel processing captures share in the computing market,” Jefferies’ Mark Lipacis said in a note carrying the Street-high target.
According to Lipacis, Nvidia’s decade-long investment in CUDA has resulted in a multi-year competitive advantage.
CUDA is a parallel computing platform and programming model developed by Nvidia for general computing on graphical processing units.
Lipacis and Nvidia chief financial officer Colette Kress recently had a chat.
The analyst believes that while software sales are mostly embedded within hardware sales, enterprise AI software in the data center may be headed toward a licensing model.
As per Kress, it's possible for software to be broken out as a line item when the revenue becomes meaningful.
With 2.5 million developers on CUDA already, that scale should lead to spreading of new software development kits, according to Lipacis.