The GPU segment is benefiting from the gaming business, which saw a solid 77% revenue growth (y-o-y) in Q1. The company recently announced its new product – NVIDIA RTX – aimed at high-end graphics, and it should further aid the segment growth. The automotive segment is the fastest growing sub-segment of Nvidia’s Tegra business and offers better margins when compared to devices. Our $208 price estimate for Nvidia is based on $6.14 expected EPS in 2018 and a price to earnings multiple of a little under 34x. Our price estimate of $208 for Nvidia is at around a 15% discount to the current market price.

Source: Forbes May 23, 2018 15:33 UTC