Nvidia teases 'Project Beyond' for new GPUs, Stifel sees 20% upside as it begins coverage
Justin Sullivan

Nvidia (NASDAQ:NVDA) teased new versions of its graphics cards on Thursday, while investment firm Stifel started coverage on the semiconductor company, noting it sees 20% upside from current levels. 
The tweet, calling attention to "Project Beyond," likely refers to updates to its GeForce RTX 40 series GPUs, likely part of the company's Lovelace line of products.
Last month, Nvidia (NVDA) Chief Executive Jensen Huang said the fundamentals of gaming are "strong" even as the company deals with an inventory correction. Huang added he would have more details about Nvidia's (NVDA) gaming efforts at its GTC conference, set for September 20. 
Following Huang's comments, Citi analyst Atif Malik said the GTC conference could be a catalyst for Nvidia's (NVDA) stock, as there are expectations for new gaming products.
Nvidia (NVDA) shares oscillated between fractional gains and losses in mid-day trading on Thursday. 
Separately on Thursday, Stifel analyst Ruben Roy started coverage on Nvidia (NVDA) with a hold rating, noting that the company has used its GPU expertise to move into "accelerated computing challenges" and eventually grow into a $1T opportunity over time, but near-term issues remain.
"We are bullish on the company's longer-term opportunities across its target end market segments, but the lack of visibility into the timing and magnitude of revenue re-acceleration, particularly relative to [Nvidia's] Gaming segment, is likely to limit share price upside, in our view," Roy, who has a $165 price target on Nvidia (NVDA), wrote in a note to clients.
The analyst noted that while the "abrupt" decline in gaming revenue is likely to be a concern through the end of the fiscal year, there is a chance the next quarter "could prove to be a bottom" as Nvidia (NVDA) significantly under ships its true demand into the anticipated Lovelace launch.
In addition, Roy noted that Nvidia (NVDA) should see a boost to its data center business as the launch of its Hopper line of products starts to ramp up in production.
Last month, UBS said both Nvidia (NVDA) and Advanced Micro Devices (AMD) have seen "consistently lower pricing" for their GPUs over the past few months, but the rate of decline has slowed down.