Nvidia Jumps as Analysts Say Its a Buy Ahead of the CES Trade Show

Thursday morning, Citi said it was putting NVIDIA shares on a “positive catalyst watch,” noting that the 2021 Consumer Electronics Show will get underway on Monday, and that demonstrations of NVIDIA products at the annual trade show could give investors new reasons to buy the stock.

Nvidia is getting a spark from Citi analyst Atif Malik, who believes the stock has woefully lagged behind other chip makers and has the potential to unveil good news during the CES trade show in Nevada, kicking off on Monday, January 11th.

He proposed a “positive catalyst watch” on the company [$NVDA] heading into the week, noting that the stock has dipped 17% since September, while the SOX semiconductor index has surged 24%. The virtual conference will include meetings with investors and is likely to illustrate the company’s progress in gaming and autonomous vehicles, among other applications.

Nvidia, much like the FAANG stocks, hasn’t budged since touching an all time high of $589.07 on September 1st. However, Malik forecasts an upswing in demand for processors used in cloud-based data centers for the first half of the year, coupled with sustained demand for graphics processors (GPU’s) used in PC gaming. New York Sports Betting v.s. DraftKings Stock

NVIDIA and SoftBank announced a definitive agreement under which NVIDIA will acquire Arm Limited from the SoftBank Vision Fund in a transaction valued at $40 billion. The combination brings together NVIDIA’s leading AI computing platform with Arm’s vast ecosystem to create the premier computing company for the age of artificial intelligence.

He added that demand for those processors continues to outrun supply, mostly because they’re used for crypto mining. His ballpark figures for earnings per share are 2% above the Street’s consensus for the January quarter, and 5% above for the April quarter. Broadcom Gets a Boost

Malik goes on to say he isn’t too worried about news that the U.K.’s Competition and Market Authority plans to analyze the company’s pending acquisition of the chip design company Arm from SoftBank for $40 billion. It’s the typical regulatory process, given that Arm is based in the U.K., adding that the deal isn’t expected to close before Q1 of 2022.

$NVDA YTD

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