Nvidia shares will keep rising even after the stock's big gains this year, according to Bank of America Merrill Lynch.
The firm reiterated its buy and 'top sector pick' ratings for Nvidia shares, predicting strong demand for the company's previous generation Pascal graphics chips.
In August, Nvidia announced its new eighth-generation Turing graphics architecture. Last week the first gaming cards based on Turing became available.
On Thursday Morgan Stanley said the gaming performance of Nvidia's latest graphics card was below its expectations.
We "believe Street's mixed initial reaction to NVDA's new Turing game card launch could prove short-sighted," analyst Vivek Arya said in a note to clients Monday. "In our view, better availability (and market prices) of Pascal along with initial Turing ramp provides a compelling case for ... NVDA gamers still on legacy/sub-standard tech to upgrade, regardless of which product family gamers ultimately choose to upgrade to."