CICC analysts said in a note Wednesday that NVIDIA (NVDA) is well-positioned in AIGC with advanced technologies and a strong ecosystem. The firm initiated coverage of the stock with an Outperform rating and a target price of $870.
"In our view, NVIDIA as a pioneer of accelerated computing has advantages in artificial intelligence (AI) technologies and ecosystem and will likely benefit from the accelerating infrastructure construction for AI-generated content (AIGC)," wrote the firm.
The firm notes that cloud and AIGC are driving the rapid growth of Nvidia (NASDAQ:NVDA)'s data center business, with the integration of software and hardware helping to accelerate the development of computing platforms and strengthen competitive advantages.
In gaming, analysts believe the company maintains long-term leadership in the high-end graphics card market on advanced technologies and ecosystems.
Furthermore, analysts see intelligent driving as a potential new earnings growth driver. They note NVIDIA is building itself into a SoC-based intelligent driving solution supplier.