BMO Capital Markets analyst Ambrish Srivastava raised his price objective on Nvidia Corp. NVDA, +2.08 percent to $1,000 from $750, the highest among FactSet analysts who cover the stock. In premarket trade on Thursday, the stock is up 1.4 percent. Srivastava is optimistic about software’s rising importance to Nvidia’s revenue strategy. In a note to clients, he said, “As we go further out to the company’s data center business, we now envision the business rising to a $32 billion business a few years out, vs our prior projection of $25 billion.” “We also believe that as software becomes a larger part of the business, [gross margins] will continue to rise, and we currently see GMs of 75 percent for the business, up from 72 percent in our previous model.” In Wednesday’s session, Nvidia’s stock finished at $800.10. The stock has gained 53 percent this year, while the S&P 500 SPX, +0.22 percent has gained 14 percent./n
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