Shares of Nvidia Corp.(NASDAQ:NVDA) gained 1.2 percent in early trading Wednesday, after the visual computing company was reiterated outperform with a $300 price target (23% upside from current pps) at Raymond James, which said Nvidia shares will advance as the company releases its next generation gaming graphics chips later this year.
In a note to clients yesterday morning. Raymond James’ Chris Caso cites mid-quarter channel partner checks and says the firm feels “very comfortable with [its] 2H18 estimates for both Gaming and Datacenter following those checks.” The analyst also notes that his firm continues to believe that Nvidia’s “October quarter will benefit from a new gaming product cycle, which we expect to be a catalyst and potential source of upside.”
The analyst, who highlights the fact that there is “significant pent up demand” for the new products from the gaming community, says also that he expects the company’s gaming division sales to jump 10% quarter-on-quarter in the October quarter.
As of writing, Nvidia is changing hands at $239, up less than three percent. The stock is up 24.5% year-to-date and 58% year-over-year.