(FinancialPress) — A Wall Street firm sees Nvidia as the potential greatest winner of China‘s new citizen monitoring policy. The country will oversee its citizens via AI-powered facial recognition.
The firm, UBS, announced a rise in its price target for the company‘s stock – going from $266 to $285 in its latest letter to customers. The fact that NVDA leads the industry‘s pack in machine learning software and chip markets was cited as the main reason for the new forecast.
Nvidia‘s “Metropolis” platform enables video feed analysis via AI technology. The service platforms allows governments to improve its law enforcement, traffic monitoring and public safety efforts.
UBS‘ Timothy Arcuri said in a note to clients titled “Deep Learning & Mass Surveillance: Tied at the Hip.”: “Our recent analysis of mass, real-time facial recognition in China, and its potential spread to other countries has uncovered a potential high-/mid-single digits growth tailwind for NVDA earnings. China to lead the way, but rest of world will use facial recognition too. … Adoption in China will be rapid because of government programs that require the deployment of a massive surveillance infrastructure. Real-time facial recognition to identify jaywalkers is already deployed at many Shenzen intersections.”
The note continued to reveal that the “mass facial recognition and traffic monitoring” market could bring sales opportunities for up to $5 billion to Nvidia‘s doorstep in the next 2 years. Nvidia has an estimated 90% of the A.I. chip market to date, according to UBS.
The firm kept its neutral rating for NVDA shares – due to its current valuation.
Nvidia shares have gained 37% thus far in 2018. In comparison its index, the S&P 500, has grown only 4%. NVDA shares dipped slightly in today‘s session, as well as on Monday‘s.