BMO Capital Markets hiked its Nvidia price target to a Wall Street high on Thursday, citing a bullish view on the semiconductor company's data center business. "For NVDA, we are raising our target price to $1,000 from $750, based on our confidence in the data center business as it continues to evolve from hardware to a hardware with a meaningful software component further out," BMO's Ambrish Srivastava said in a note. The new price target implies upside of 25% to the stock's closing price of $800.10 on Wednesday. BMO reiterated its outperform rating on Nvidia shares. The firm raised its outlook on Nvidia's data center component. "As we look further out to the company's data center business, we now see the business growing to a $32 billion business a few years out vs. our prior expectation of $25 billion," Srivastava said. BMO also said that as Nvidia focuses more on software, the firm expects gross margins to rise, meaning increased profitability. Shares of Nvidia are up more than 55% in 2021 and have more than doubled in the past 12 months. — CNBC's Michael Bloom contributed to this report.
Nvidia headquarters in Santa Clara, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
BMO Capital Markets hiked its Nvidia price target to a Wall Street high on Thursday, citing a bullish view on the semiconductor company's data center business.