Chipmaker Nvidia (NVDA) is making waves with its technology to create enterprise metaverse applications. Nvidia stock soared on Thursday after getting a bullish report from a Wall Street analyst. It notched a record high on Friday before pulling back.
On Tuesday, the Santa Clara, Calif.-based company likely will announce the general availability of Omniverse Enterprise, Wells Fargo analyst Aaron Rakers said in a note to clients. The news is expected to break during a keynote presentation from Nvidia Chief Executive Jensen Huang at the start of the company’s virtual GTC conference.
“We see Nvidia Omniverse as a key enabler/platform for the development of the metaverse across a wide range of vertical apps — industrial, manufacturing, design & engineering, autonomous vehicles/robotics, etc.,” Rakers said. “Nvidia Omniverse Enterprise represents a significant platform expansion strategy for Nvidia, which also entails a deepening recurring software story.”
Rakers reiterated his overweight, or buy, rating on Nvidia stock and raised his price target to 320 from 245.
Nvidia Stock Rockets
On Thursday, Nvidia stock rocketed 12% to close at 298.01.
On the stock market today, Nvidia stock ended the regular session down 0.2% to 297.29. In intraday trading, it hit an all-time high of 314.
On Oct. 22, Nvidia stock broke out of a six-week consolidation pattern at a buy point of 230.53, according to IBD MarketSmith charts. On Thursday, it triggered the eight-week hold rule, an exception to taking profits after a gain of 20% to 25% from a breakout, based on IBD trading principles.
Omniverse is an online platform that allows creators to collaborate in real time using physically accurate simulations and 3D renderings. Nvidia describes it as a “platform for connecting 3D worlds in a shared virtual universe.”
Nvidia is one of several major tech companies talking about the metaverse as the next generation of the internet. Others touting the metaverse include Microsoft (MSFT) and Meta Platforms (FB), the company formerly known as Facebook.
Nvidia stock is tied for first place in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It is one of six stocks in the group with a best-possible IBD Composite Rating of 99. The fabless semiconductor group ranks second out of 197 industry groups that IBD tracks.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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