Shares of Nvidia rose Thursday, in defiance to a Truist analyst’s price target cut.
Analyst William Stein cut his price target on the chip manufacturer to $350 from $389. Despite the price cut, he remained bullish on the company, reiterating his Buy rating on the stock.
“Recent takeaways are constructive, but we are lowering our PT based on growth stock multiple pressure,” Stein wrote in a research note Thursday.
Nvidia (ticker:NVDA) recently announced new products and partnerships across the gaming, professional visualization, and automotive end markets that continue to suggest an upside for the company in the long-term, Stein said.
In the short term, Stein believes availability for gaming GPUs should improve mid-year as shortage strains begin to subside, providing a significant upside. Nvidia executives also signaled that they would expand the company’s addressable market to include new product categories like the Omniverse and enterprise software.
The company could also start ramping up its revenue for its autonomous driving initiatives, Stein added. Nvidia expects to begin executing its $8 billion driving pipeline through 2027, which will include designs for robotaxis and trucking.
Nvidia stock closed higher 2.1% at $281.78 on Thursday. The shares tumbled Wednesday after the Federal Reserve’s policy meeting minutes from December suggested that the central bank would raise interest rates earlier and faster.