After Nvidia 's ( NASDAQ: NVDA ) 4-for-1 stock split This week, Citigroup analyst Atif Malik raised his price target to $ 223 from $ 180. The stock fell back in early July, but stocks were up 1.93% Thursday at 9:50 a.m. EDT.
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Citigroup analyst is optimistic about to the next product cycle of Nvidia. The graphics specialist is expected to have 5-nanometer Ampere chips by 2022, and later in 2023, Nvidia is expected to launch its first data center processor, Grace.
The business is on fire this year. Nvidia saw an 84% year-over-year revenue increase in the first fiscal quarter, thanks to a 79% increase in data center revenue and a 106% increase in gaming graphics card sales.
However, some investors are worried that the acceleration in demand for games was inflated by the surge in cryptocurrency prices earlier this year, as graphics cards are often used to mine digital currencies. .
Cryptocurrency prices have fallen sharply in recent months, so if theNvidia's gaming segment has been artificially boosted by crypto miners buying its tokens, this could negatively impact Nvidia 's gaming activity in the next quarter.
Nvidia 's GeForce RTX 30 series graphics processors. 'image: Nvidia.
It's hard for Nvidia to estimate how much revenue comes from crypto miners, but the company reported $ 155 million in revenue of its new cryptocurrency mining processors (CMP) in the last quarter. In perspective, the gaming segment generated $ 2.76 billion.llars of revenue in the first quarter of the fiscal year.
Citigroup analyst thinks investors should buy this growth tech action on any slowdown in demand for games in the near term, as growth catalysts over the next few years with the launch of new chips are expected to slow down. prevail over any short-term weakness.