Nvidia Jumps On Jefferies Upgrade As Shift In Computing Seen Helping

Nvidia Jumps On Jefferies Upgrade As Shift In Computing Seen Helping
Nvidia Jumps On Jefferies Upgrade As Shift In Computing Seen Helping

By Dhirendra Tripathi

Investing.com – Nvidia (NASDAQ:) shares were up more than 5% Thursday, boosted by Jefferies’ (NYSE:)’ 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.

 

 

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