Analyst boosts Nvidia share price target as AI facial recognition market booms

The market for mass facial recognition and traffic monitoring could be worth up to $5 billion in additional sales for Nvidia by 2020, according to a note from investment bank UBS to investors, CNBC reports. UBS raised its target price for Nvidia stock from $266 to $285, as an analyst estimated the company holds a 90 percent share of the market for AI chips.

The note “Deep Learning & Mass Surveillance: Tied at the Hip,” analyzed the mass surveillance market in China, and its potential in other countries, which note author Timothy Arcuri said creates a “tailwind” which could boost Nvidia earnings by mid to high single digits.

“China to lead the way, but rest of world will use facial recognition too,” Arcuri wrote. “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.”

Arcuri maintained his neutral rating for the stock, which is up 37 percent on the year through Friday, according to CNBC.

AnyVision joined Nvidia’s Metropolis Software Partner Program earlier this year to provide its facial recognition technology to the “smart city” platform.

As it continues to develop its “smart city” and mass surveillance capabilities, China’s government has thrown its weight behind AI development in the country, including by developing an open source AI platform.

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