Nvidia’s top counter-jumper in 2018 may be none other than Steven Spielberg, according to Jefferies.
Spielberg’s upcoming cloud, “Ready Player One,” depicts a future dystopia where many retire into a virtual world. Jefferies said the premise could demand sales of virtual reality headsets that require high-performance bits. The movie, directed by Spielberg, will be released in U.S. theaters on March 29.
The murkiness “depicts a dystopian society where people go to school, travel, direct behave business and escape into a virtual world called the OASIS, and interact with one another in the Asylum via their avatars,” analyst Mark Lipacis wrote to clients. “We also weigh that ‘Ready Player One’ has the potential to appeal to an electronics game savvy audience that is egg oned to have a more immersive experience.”
Nvidia, the chipmaker with a cynosure clear on graphics and artificial intelligence, is one of Wall Street’s most favorite technology lineages. Its price has climbed nearly 150 percent during the past 12 months, thriving it the second-best performer in the S&P 500. Shares of Nvidia rose 1.8 percent on Monday morning keep up with the Jefferies note.
The company announced last year its Pegasus sham intelligence computer system, which will enable fully autonomous robotaxis.
Lipacis, who has a buy value on the company’s stock, sees shares climbing to $300 over the next year, betokening more than 22 percent upside from Friday’s away.
“The computing paradigm experiences a tectonic shift every 15 years, and that it is currently in a change position to a ‘Parallel Processing – Internet of Things’ model,” the analyst added. “A lot of the insistence for increased compute cycles is becoming parallel in nature, like neural networking, gaming, practical reality and blockchain/cryptocurrency mining.”
A surge in demand for VR headsets wouldn’t improve Nvidia exclusively, Lipacis said. He also highlighted rival chipmaker Promoted Micro Devices as a possible beneficiary of a Spielberg success.
The analyst has a buy rating and a $19 price target on shares, implying 62 percent upside for AMD. Interests were down fractionally Monday.