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Nvidia's GTC Taipei Announcements Offer Significant Growth Potential, Truist Says

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Nvidia's GTC Taipei Announcements Offer Significant Growth Potential, Truist Says

Nvidia's (NVDA) recent product announcements pose significant growth potential for the tech giant that marked its formal entry into the consumer PC processor market, Truist Securities said in a note emailed late Monday.

Nvidia disclosed new semiconductor, system and software products at the GTC event in Taipei, Taiwan. The products included RTX Spark, a superchip for Windows laptops and desktops, and DGX Station, the AI deskside supercomputer for professionals.

RTX Spark's launch would mark the tech giant's entry into the PC market.

Nvidia's shares rallied 6.3% on Monday, and were up 0.4% intraday Tuesday.

Nvidia's opportunity extends beyond the traditional central processing unit market where Intel (INTC) and AMD (AMD) compete today, Truist Managing Director William Stein said.

Nvidia could capture significant growth in higher-cost graphics processing unit systems that "could be multiples of the client CPU market today," he wrote.

"We are most intrigued by the company's new DGX Station and RTX Spark computers that appear aimed at developing and running AI models locally without the need for datacenter resources," Stein wrote. "While it opens a significant (total addressable market for Nvidia), we believe the effort is more strategic, and focused on extending (its) reach into all aspects of AI model development, deployment, and processing."

Truist reiterated its buy rating on Nvidia's stock with a price target of $307.

Price: $225.53, Change: $+1.16, Percent Change: +0.52%

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