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Nvidia Gets New Street-High Price Target On Arm Deal: ‘Ubiquitous Across Semi Industry’

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Nvidia Gets New Street-High Price Target On Arm Deal: 'Ubiquitous Across Semi Industry'

NVIDIA Corporation’s (NASDAQ: NVDA) $40 billion deal to buy U.K. chip designer Arm Holdings has prompted an analyst at Needham to lift his price target to the highest on Street.

The Nvidia Analyst: Rajvindra Gill maintained a Buy rating on Nvidia and increased the price target from $600 to $700.

The Nvidia Thesis: Financially, the Arm acquisition would be potentially accretive, adding $1.20-$1.65 to Nvidia’s earnings per share in calendar year 2022, Gill said in a Tuesday note.

The new price target is based on 52 times P/E multiple on calendar year 2022 EPS of $13.50, with $12 for base Nvidia and $1.50 for Arm.

Strategically, the Nvidia-Arm combination will create the leading AI computing platform in the semiconductor industry, Gill said. The combo will become ubiquitous across the semiconductor industry.

The combination of three processors under one house – GPUs for accelerated computing, NPUs for networking and security processing and CPUs for low latency, single thread predictable processing – positions Nvidia to be the leading AI platform in the industry, the analyst said.

Further, Nvidia can quickly bring its GPU IP to Arm’s broad CPU ecosystem of smartphone, tablet, infrastructure, AI/ML, IoT and embedded automotive chips.

“The other major strategic rationale for the deal is to target the “trillions” of devices that will be connected to the data center, ranging from smart retail, smart streets, smart robotics, industrial, wearables, and auto,” the analyst wrote in the note.

All those devices, he said, will be accelerated and include AI capability in the near future. The analyst estimates a $250 billion total addressable market by 2022, $95 billion devices $80 billion data center and $75 billion for auto, edge and IoT.

Nvidia shares traded around $517 at the time of publication.

Latest Ratings for NVDA

Date Firm Action From To
Sep 2020 Craig-Hallum Maintains Hold
Sep 2020 Needham Maintains Buy
Sep 2020 Jefferies Maintains Buy

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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Three men are accused of creating ‘man cave’ under Grand Central station [Video]

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Three men are accused of creating 'man cave' under Grand Central station [Video]

Three railroad workers have been suspended for turning a storage room under New York’s Grand Central Terminal into an unauthorized “man cave” with a television, a refrigerator, a microwave and a futon couch, officials said Thursday.

Video Transcript

[MUSIC PLAYING]

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What Is a Jumbo CD?

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Yahoo Finance

A certificate of deposit, more commonly known as a CD, is a type of bank account that pays interest in exchange for the depositor leaving their funds in the account until it matures. A jumbo CD functions in the same way, … Continue reading ->The post What Is a Jumbo CD? appeared first on SmartAsset Blog.

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Germany pays tribute to victims of 1980 Oktoberfest bombing

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Germany Oktoberfest Attack Memorial

BERLIN (AP) — Senior officials and survivors paid tribute Saturday to the victims of a deadly neo-Nazi attack on Munich’s Oktoberfest 40 years ago, as Germany’s president warned that far-right extremism remains a persistent problem in the country.

The bombing on the evening of Sept. 26, 1980, claimed 13 lives, including that of three children and the attacker, student Gundolf Koehler, a supporter of a banned far-right group. More than 200 people were wounded.

“Right-wing extremism has deep roots in our society,” President Frank-Walter Steinmeier said at a memorial event in the Bavarian capital. Germany has seen a number of further attacks inspired by anti-Semitism, hatred of foreigners and neo-Nazi ideology in recent years, including a series of far-right killings that police initially attributed to migrant gangs.

Steinmeier said the perpetrators weren’t “disturbed people,” but rather part of “networks that we need to investigate.”

An initial investigation of the Oktoberfest attack concluded that Koehler acted alone, out of personal frustration. But in 2014, federal prosecutors revisited the case after a previously unknown witness surfaced.

In July, prosecutors said the witness’ indications that there may have been co-conspirators hadn’t been corroborated, but that it was clear Koehler had been motivated by far-right extremism. Victims’ lawyers say there are still many unanswered questions about the attack.

Bavaria’s governor, Markus Soeder, apologized to survivors and the victims’ families for mistakes made during the initial investigation.

Earlier this week, the German government announced it was setting up a 1.2 million-euro ($1.4 million) fund to help survivors of the attack.

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Christine founded Sports Grind Entertainment with an aim to bring relevant and unaltered Sports news to the general public with a specific view point for each story catered by the team. She is a proficient journalist who holds a reputable portfolio with proficiency in content analysis and research.

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