Santa Clara, Calif.-based chipmaker NVIDIA Corp. (NVDA) was highlighted in an upbeat research note from analysts at Jefferies & Co on Monday.

The company, which designs graphics processing units (GPUs) for the gaming and professional markets, has been a Wall Street favorite this year, up nearly 200% over the past 12 months and 55% year-to-date (YTD). (See also: SoftBank Takes a $4 Billion Stake in NVIDIA.)

Waiting for Lower Entry Point

In the most recent applause from the Street, Jefferies analyst Mark Lipacis reiterated his buy rating on NVIDIA, indicating that his recent conversations with investors show that while they want to buy shares, many are waiting for a cheaper price.

Lipacis says that he has been on the road “marketing our recent franchise note” published a few weeks back, in which the investment bank predicted a “fourth wave” of computing that involves things such as machine learning and artificial intelligence (AI) and emphasizes parallel processing. He sees the trend presenting upside for NVIDIA and its competitors such as Advanced Micro Devices (AMD), Cavium Inc. (CAVM) and Xilinx Inc. (XLNX). Jefferies remains skeptical that Intel Corp. (INTC) will continue to be a dominant player in this new era, maintaining an underperform rating on shares. The analyst suggests that “techy” investors do not love INTC, yet “yield-focused” investors like the payout.

The upbeat notes come as the tech firm gave away its first “Volta” based GPUs to AI researchers for free, the same product that boosted shares near 18% in a single day on their announcement. While competitor AMD has been geared toward the low-end market, NVIDIA is seeking out next-gen segments such as AI, self-driving cars and cryptocurrency. (See also: Trader Who Called Valeant Short Predicts Nvidia Decline.)

 

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