Why Nvidia Is Needham's Top AI/ML Stock Pick For 2022

Semiconductor stocks outperformed the broader technology sector for a third year running in 2021, and entering 2022, mega-trends such as the adoption of artificial intelligence and machine learning, next-gen automotive and mobility, electrification and proliferation of low-power intelligent devices on the edge will likely drive further semiconductor content, according to a Needham analyst. The Nvidia Analyst: Rajvindra Gill named Nvidia Corporation (NASDAQ:NVDA) as his top AI/ML pickup for 2022. The analyst has a Buy rating on Nvidia shares and $400 price target, suggesting over 40% upside from current levels. The Nvidia Thesis: Nvidia has seen significant growth in both its Gaming and Data Center business thanks to growing adoption of new "RTX" capable GPUs by gamers and proliferation of AI workloads and ML in Data Centers, analyst Gill said in a note. Only 25% of the current 250 million GeForce installed base is RTX-enabled, suggesting a lengthy upgrade cycle ahead and more Gaming upside, the analyst said.