Investors should buy Nvidia because the launch of its latest graphics card will boost sales and take share from the competition, like Advanced Micro Devices, according to Goldman Sachs.
The firm reiterated its buy rating on Nvidia and put the graphics chipmaker's stock on its conviction buy list.
Nvidia announced the GTX 1080Ti graphics card on Feb. 28 and said it will be available for $699 as of Friday.
The "GTX 1080Ti launch highlights tough road ahead for AMD. … We view this as incrementally positive for the company's [Nvidia] gaming business," analyst Toshiya Hari wrote in a note to clients Monday. "We remain bullish on the fundamental outlook for the company, particularly as it continues to demonstrate its ability to execute and take advantage of its strong positioning."
Nvidia shares are up 202 percent in the past 12 months through Monday on the successful launch of its new Pascal graphics chips. However, the stock is down 16 percent since the company's Feb. 9 fourth-quarter earnings report.
