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
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.