Analyst Draws Parallel Between Nvidia And Apple, Believes Investors Can Still Ride The Wave Despite 200% Surge This Year

An analyst drew parallels between Nvidia Corp. NVDA and Apple Inc. AAPL, citing Nvidia’s full-stack approach as a key factor in its potential for outsized profit share in the industry, Morningstar reports.

Analyst’s View: Ben Reitzes, an analyst at Melius Research, initiated coverage of Nvidia with a buy rating and a $625 price target.

He stated, “Nvidia is the obvious flagship AI company, whose decisions over the last two decades have positioned it for long-term benefits.”

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Future Prospects: Reitzes further compared Nvidia’s strategy to that of Apple, stating that a full-stack approach tends to deliver an outsized profit share in the industry for longer than expected once the ball starts rolling downhill due to developer support and becoming an industry standard.

Despite Nvidia’s shares soaring more than 200% this year, Reitzes suggests that investors haven’t missed the boat.

“On the rare occasion a company like this comes along, we caution investors not to get caught up in [an] arbitrary market-cap milestone and [to instead] focus on sustainable long-term earnings power. Apple has also shown us…sometimes the consensus can keep being right — and keep working when the business model is right,” he explained.

BofA Securities analyst Vivek Arya also expressed optimism about Nvidia’s future, raising his price objective on the stock to $550 from $500 while maintaining a buy rating.

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