Erste Group Research analysts upgraded shares of NVIDIA Corporation (NASDAQ:NVDA) to Buy from Hold in a note to clients on Tuesday.
They explained in their note to investors that NVIDIA, which provides solutions for customers in the growing artificial intelligence segment, saw its Data Center segment grow revenue by +11% (y/y) in 4Q. However, its Gaming segment was slow to recover in 4Q.
Looking ahead, the analysts said NVIDIA's sales in the data center segment will "increase sharply due to the increased use of AI in many areas of life."
"NVIDIA simply offers the most powerful products ever for this important application area. Revenue and profit growth will accelerate significantly in 2024," the analysts concluded.
Nvidia shares are down more than 2% on Tuesday, with general market sentiment negative on the day.