Nvidia Is the Star of the S&P 500 This Quarter and It May Just Be Getting Started

  • Stock up 54% in past month amid earnings beat, SoftBank stake
  • Stock may double in value in bull-case scenario, Citi says

Nvidia Corp. is on a roll. Again.

The Santa Clara, California-based chipmaker is up 54 percent in the past month, sending it to the best gain in the S&P 500 Index this quarter. Wild gains aren’t new for Nvidia, which more than tripled in value last year, but analysts are just getting more and more bullish.

Nvidia rallied more than 6 percent on Thursday as Citigroup Inc. said the stock may double in the next 12 months in a bull-case scenario. Simultaneously, UBS Group AG said it’s more positive on Nvidia’s auto sales estimates. Both firms boosted the stock’s target price, with Citigroup giving the chipmaker a target of $180, the highest among analysts tracked by Bloomberg.

Nvidia has soared since first-quarter earnings a month ago showed the company, traditionally a graphics chipmaker, is making progress expanding into new areas like self-driving cars and data centers. Significantly more of Nvidia’s semiconductors will be used in Tesla Inc.’s upcoming Model 3 car and its autopilot driver assist, UBS analyst Stephen Chin said in Thursday’s note. Citigroup said that a growth in data center sales and auto inflection in 2018 isn’t priced into the stock.

Shares have also rallied since SoftBank Group Corp. was said to amass a $4 billion stake in the chipmaker to become its fourth-largest shareholder.  A recent surge in digital coin prices may also be helping Nvidia shares.

  • Nvidia currently has 18 buy, 12 hold and 5 sell recommendations, with an average price target of $132.
  • Short interest is 4.7 percent of the float, according to financial analytics firm S3 Partners.
  • Nvidia’s add-in graphics board market share rose to 72.5 percent in the first quarter, up from 70.5 percent in the previous three months, according to Jon Peddie research.
    Before it's here, it's on the Bloomberg Terminal.