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Analyst hikes Nvidia price target to $220

Nvidia Corp. is a $220 stock, says RBC Capital Markets analyst Mitch Stevens, who hiked his price target Thursday from a prior $205. Nvidia stock edged down less than 1% to $190.65 after hours. In a note to investors, Stevens wrote that his bull case reflects earnings of $10 per share by fiscal year 2021. What will propel shares to $220 and beyond is the chip company’s data center hardware and increased revenue from its gaming segment due to the higher costs of virtual reality hardware and more stable trends in the core segment, he said. Self-driving vehicles, which Nvidia has made significant bets on, will also drive the company’s stock. Cryptocurrency mining will add a “moderate boost” as well since miners use some Nvidia GPUs. Investors have sent Nvidia stock up 79% this year, with the S&P 500 index rising 14.1%.

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