Nvidia’s stock price target gets a boost at Deutsche Bank, but analyst cautions against ‘super bull’ scenarios

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Shares of Nvidia Corp. rose 0.5% in premarket trading Thursday, as Deutsche Bank analyst Ross Seymore boosted his price target to $500 from $450, saying he expects the semiconductor maker to report a “solid beat” with third-quarter results and to provide upbeat guidance for the fourth quarter. Nvidia is scheduled to report 3Q results on Nov. 18, with the FactSet consensus for EPS of $2.57 and revenue of $4.41 billion. Seymore cautioned investors, however, against “super-bull case scenarios,” as datacenter may be an issue given Intel Corp.’s trouble there and because gaming upside may be capped by supply constraints. Seymore reiterated his hold rating, as his new target is 6.8% below Wednesday’s closing price of $536.72. “While [Nvidia] continues to hit on all cylinders in an otherwise challenging macro environment, we believe much of this goodness is reflected in its share price…and at such a valuation fear that an inevitable pause in growth…appears to be insufficiently discounted,” Seymore wrote in a note to clients. The stock has soared 128.1% year to date through Wednesday, while the PHLX Semiconductor Index has advanced 35.8% and the S&P 500 has gained 10.6%.