All eyes are on chip maker Nvidia (NVDA) -) this week as investors wait for the company to reveal its quarterly results after the closing bell on Wednesday.
The stock has been the biggest performer on the Nasdaq this year thanks to its position at the forefront of the artificial intelligence revolution.
DON'T MISS: Analysts expect fireworks when Nvidia reports earnings
But after jumping nearly 240% year to date, many are wondering whether the stock has any more room to run, even with strong financials backing it up.
But, Keybanc analyst John Vinh sees a bright road ahead for the company, raising his price target to $620 from $550 per share. He went on CNBC to explain his thinking behind the upgraded outlook.
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"We're expecting Nvidia to report meaningful upside to the quarter and guidance, so we did raise our numbers pretty meaningfully. We think they can earn $17.61 in EPS next year," Keybanc's John Vinh said.
"We have Nvidia growing almost 90% this year and 70% next year."
Vinh then compared that growth to the expected growth of mid-to-high single digits for the entire semiconductor industry, showing just how far ahead Nvidia is than the rest of its cohorts.
"We do think that AI and generative AI is a pretty significant opportunity," Vinh said.
"There's only a handful of companies that really true enablers within the semiconductor industry of generative AI, and obviously Nvidia is at the top of the list. We do think there will be broader market implications outside of semis, but that will take some time to play out."
Check out the entire interview below.
$NVDA is set to report results tomorrow. Numerous analysts have raised their earnings expectations and price targets – some as high as $800. Keybanc Analyst John Vinh explains his price target raise from $550 to $620: pic.twitter.com/nuID6GyEGX
— Squawk Box (@SquawkCNBC) August 22, 2023
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