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Nvidia Is Only Up 600% and Goldman Sachs Thinks More Explosive Gains Lurk

Bret Kenwell

Nvidia has been a tricky stock. For one that is up more than 600% over the past two years, it had been surprisingly quiet for a few months leading up to its temporary breakout in mid-September. After jumping higher to new highs, Nvidia stock quickly settled down again.

On Tuesday the company announced some new state-of-the-art self-driving car hardware. The news was enough to boost Nvidia stock to new all-time highs near $193, before it ultimately closed near $189. While it ended positive on the day, many were looking for those gains to extend, not deflate. Now investors are wondering where Nvidia is heading -- up or down -- and whether it can hit $200 per share before its November earnings report.

If confidence is waning, it's not on the analyst front. Goldman Sachs analyst Toshiya Hari has a conviction buy rating on Nvidia, but raised his price target to $217 from $193. The price target implies about 15% upside from current levels.

Shares of Nvidia were near flat in premarket trading, but jumped to $190 only to give back gain early in the session.

So what's got Hari feeling better about Nvidia than he already did? After attending the GTC Europe 2017 conference, he came away feeling more positive about Nvidia. The company is better positioned to "address the Inferencing opportunity with its GPU architecture, Volta and high-performance deep learning inference optimizer, TensorRT."

After unveiling its new self-driving hardware on Tuesday, TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, had a chance to size up Nvidia. His takeaway? This new technology is "going to change everything," he reasoned.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells NVDA? Learn more now.

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