This Is The Nvidia Pullback You've Been Waiting For

The pullback that red-hot NVIDIA Corporation (NASDAQ: NVDA) experienced in last week, despite another record quarter, "will prove the entry point many investors have been looking for" according to Canaccord Genuity analyst Matthew Ramsay.

With record-high gaming GPU and Professional Visualization revenues continuing to exceed expectations in the second quarter, Nvidia has been one of the hottest stocks in the market. Datacenter sales that slightly missed street expectations was what ended up sending the stock down more than 5 percent on Friday, setting shares up for an attractive entry point.

Canaccord is suggesting a Buy on the pullback, and raised its price target from $180 to $190.

Bitcoin Surge

Bitcoin’s recent wild runup is bringing heavy interest into the cryptocurrency world, which could add as much as $250 million to Nvidia’s topline. Although demand is expected to decline over the short term, company management believes it's well positioned to serve the market long-term.

“Overall a very strong quarter, and we believe NVIDIA is continuing to execute strongly into several secular growth markets,” Ramsay said. “We believe new trends including deep learning, virtual/ augmented reality, and autonomous driving will catalyze new market growth longer term.”

Shares of Nvidia were up 6 percent on Monday, trading around $165 per share at time of publication.

Related Links:

With Nvidia Down 13% This Week, Jefferies Says 'Buy On Weakness'

Looking Beyond The Shiny Surface Of Nvidia's Big Q2 Beat

Image: BagoGames, Flickr