Investing.com - Nvidia climbed on Wednesday after a Wall Street analyst backed the chipmaker to leave its rivals behind as its growth story remains in the “early innings.”
Benchmark analyst Ruben Roy initiated coverage on the stock with a buy rating and a $210 price target, suggesting upside of more than 25% from its closing price of $167.87 a day earlier.
Nvidia (NASDAQ:NVDA) climbed 2.1% in afternoon trading. It's up 28.4% on the year and 4.4% in the third quarter.
Nvidia is "uniquely positioned" to grow at a faster compound annual rate than its peers and is in the "early innings" of its growth story due to the "increasing use of GPUs across a diverse set of growth markets,” Roy said.
Earlier this week, Microsoft (NASDAQ:MSFT) said it would use Nvidia’s RTX video graphics units to spice up the visuals of its popular world-building game "Minecraft."
Semiconductors have been a hot group this year. The Philadelphia Semiconductor Index was up nearly 1% on the day, taking its gains for the year so far to about 31%.