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Baird Raises Price Target for NVIDIA Corporation (NASDAQ: NVDA) on Upbeat AI Demand
In a recent development, Baird, a prominent financial services firm, has reinforced its positive outlook on NVIDIA Corporation (NASDAQ: NVDA), adjusting its price target upward to $1,050 from the previous $750.
While maintaining an Outperform rating on the stock, the firm cited robust demand for NVIDIA’s artificial intelligence (AI) solutions as a primary driver behind the adjustment.
Baird’s analysis and catalysts
Baird’s research findings underscored the continued strong demand for NVIDIA’s AI solutions, particularly emphasizing accelerating enterprise customer momentum. The forthcoming Blackwell architecture was highlighted as a significant catalyst for a substantial performance boost in NVIDIA’s offerings.
Additionally, the firm anticipates a rise in average selling prices (ASPs) and noted Taiwan Semiconductor Manufacturing Company’s (TSMC) efforts to double its CoWoS (Chip on Wafer on Substrate) capacity, which is expected to enhance supply in the latter half of 2024.
Baird’s analysis indicated that NVIDIA’s GH200 performance surpasses the combined x86 processor and H100, increasing engagements with hyper scalers and high-performance computing (HPC) original design manufacturers (ODMs). The enduring dominance of NVIDIA’s CUDA ecosystem was identified as a significant competitive advantage for the company.
Bull case for Nvidia remains strong, says Cantor Fitzgerald’s CJ Muse
CJ Muse, senior managing director of Cantor Fitzgerald, joins CNBC’s ‘The Exchange’ to discuss why he’s bullish on Nvidia, how Fed rate scenarios could impact the stock market, and more.
Bookmarked
Undervaluing Nvidia Stock Was a Mistake, Says Top Investor
Marty Shtrubel
May 07, 2024, 01:59 PM
There’s nothing wrong with admitting you were wrong. In fact, admission of a previous erroneous take can come in quite handy in the stock market. Rather than double down on a thesis that has proven to be incorrect and risk missing out on an opportunity, it’s best to make a U-turn and get in while you still can.
That, essentially, is the take offered by JR Research, a 5-star investor rated in the top 1% of the market stock pros, when looking at Nvidia (NASDAQ:NVDA).
Over the past year, Nvidia shares have experienced significant gains, driven by a series of earnings reports that have showed enormous growth and profits. Initially, JR Research viewed the market’s high expectations skeptically. Yet, having witnessed its dominance and how it has cemented its status as the “King of AI chips,” JR concedes he has underestimated the chip giant’s positioning.
“I must admit that I’ve gotten my bearish ratings on Nvidia consistently wrong over the past year, as I anticipated that Wall Street analysts were too optimistic,” the 5-star investor said. “As a result, I have reassessed my thesis to try and understand the bullish optimism underpinning NVDA stock, as I believe the market is always right (but analysis can be faulty).”
The proof really is in the pudding, borne out by the fact Nvidia has cornered the AI chip market, boasting a 90% share. Additionally, its full-stack approach consisting of chips, networking, and software should help keep at bay the challenge to its dominance posed by rivals such as AMD and Intel.
While it’s true NVDA is not cheap and never really has been, it still has a “markedly lower valuation than AMD,” which can partially explain why AMD shares have retreated significantly recently while NVDA shares haven’t suffered the same fate. Additionally, the fact AMD offered a cautious outlook on its recent earnings call suggests Nvidia “should retain the upper hand for some time.”
Add in the prospect of sustaining its growth trajectory via different levers – the new Blackwell architecture, growing sovereign AI demand from the Middle East, the launch of Nvidia AI Microservices – and JR concedes his “bearish thesis on NVDA can no longer be sustained.”
Accordingly, JR upgraded his NVDA rating from Sell to Buy. (To watch JR Research’s track record, click here)
That new assessment sits well with Wall Street’s overall take. NVDA stock boasts a Strong Buy consensus rating, based on 39 Buys vs. 2 Holds. The average target stands at $1,005.59, implying shares have room for ~11% growth in the year ahead.
That would be a huge mistake
Buy Alert: The Run In Nvidia Stock Has Only Just Begun
May 7, 202406:00 EDT
NVDA
+3.77%
C
+2.10%
The amazing thing about Nvidia
NVDA
stock isn’t that it has risen 2,000% in the last five years, it’s that the share price has further to go from here. So far this year, Nvidia stock has gained 84%, making it the second best performing stockin the benchmark S&P 500 index.
In the last 12 months, the share price has more than tripled, giving the company a $2.22 trillion market capitalization and leading it to be profiled on the TV show 60 Minutes. Yet for all its success, analysts still see further upside ahead for the chipmaker that controls about 75% of the global market for artificial intelligence microchips.
Bullish Outlook for NVDA Stock
Despite the incredible run in it share price and the fact that the stock is trading at 72 times future earnings estimates. The 41 professional analysts that rate NVDA stock give it a “strong buy” recommendation and an average price target that is 15% above current levels.
Many analysts are pounding the table for NVDA stock now as it has paused its rally over the last month (up just 0.88%) since the start of April. Analysts are urging investors to buy before the rally in Nvidia stock returns with full force.
Analysts at Citigroup
C
, for example, recently added Nvidia to a “90-day catalyst watch.” This came based on expectations that earnings reports from other chipmakers and memory suppliers will lift the stock, along with the 60 Minutes piece, and an update from CEO Jensen Huang at the Computex Taiwan conference in June.
The Citigroup analysts note that Nvidia’s stock suffered its biggest pullback in over a year during April, though the share price is now starting to quickly recover.
Market Dominance
What has analysts engaged isn’t just Nvidia’s world beating dominance of the AI chip sector, but that fact that the company is rolling out new AI chips at a blistering pace that is likely to keep it ahead of its competitors for years to come.
In March, Nvidia unveiled its next generation AI microchips at a heavily attended developer conference. CEO Huang introduced the new AI graphics processors during a town hall speech, calling them the “Blackwell” series.
The first Blackwell chip, called the “GB200,” is scheduled to ship later this year and will eventually replace Nvidia’s current generation of H100 chips that power AI applications and models and are in demand the world over.
The company’s Blackwell chips, such as the GB200, offer a huge performance upgrade for AI companies, says Nvidia’s management team. The additional processing power will enable companies to train bigger and more sophisticated AI models going forward. One of the new chips is expected to cost$30,000 to $40,000. Preorders have been huge.
Buy Nvidia Stock
Investors needn’t worry that they’ve missed the rally in Nvidia’s stock. The company’s share price can be expected to continue rising as sales of its AI chips gather steam and more powerful versions of the company’s chips come to market.
Despite the explosive rally in recent years, analysts see more gains ahead and remain bullish on Nvidia’s business and its future outlook. Investors should remain bullish too. Nvidia stock is a buy.
OCULIS HOLDING AG 2024 Annual Meeting
Vote by ?May 28, 2024?.
As a shareholder in OCULIS HOLDING AG, you have the right to vote in an important election that may affect your investment. Don't miss your chance to make your choice.
Control number: ?5143300656873184?
Account number: ?#####783?
Meeting date: ?May 29, 2024?
Earnings on Thursday
OCS; XICE: OCS) (“Oculis” or the “Company”) a global biopharmaceutical company purposefully driven to save sight and improve eye care, today announced that Oculis’ management will be attending and presenting at the Bank of America Healthcare Conference taking place on May 14-16, 2024 in Las Vegas, NV.
Riad Sherif, M.D., Chief Executive Officer of Oculis, will deliver a company presentation on Wednesday, May 15th at 11:20am PT at the Encore Hotel. A live webcast of the presentation will be available here.
The Company will be available for one-on-one meetings during the conferences. Interested investors should contact their Bank of America representative to request meetings. A link to access company presentation, when available, will be posted to Oculis website on the Events & Presentation page under the Investors & Media section.
About Oculis
Oculis is a global biopharmaceutical company (Nasdaq: OCS; XICE: OCS) purposefully driven to save sight and improve eye care. Oculis’ highly differentiated pipeline comprises multiple innovative product candidates in development. It includes OCS-01, a topical eye drop candidate for diabetic macular edema (DME) and for the treatment of inflammation and pain following cataract surgery; OCS-02, a topical biologic anti-TNFa eye drop candidate for dry eye disease (DED) and for non-infectious anterior uveitis; and OCS-05, a disease modifying candidate for acute optic neuritis (AON). Headquartered in Switzerland and with operations in the U.S. and Iceland, Oculis’ goal is to improve the health and quality of life of patients worldwide. The company is led by an experienced management team with a successful track record and is supported by leading international healthcare investors.
For more information, please visit: www.oculis.com
Oculis Contacts
Ms. Sylvia Cheung, CFO
Goldman Sachs Adjusts Price Target on NVIDIA to $1,100 From $1,000, Keeps Buy Rating
05:40:16 AM ET, 05/07/2024 - MT Newswires
05:40 AM EDT, 05/07/2024 (MT Newswires) -- NVIDIA (NVDA) has an average rating of buy and price targets ranging from $620 to $1,400, according to analysts polled by Capital IQ.
Reuters Videos
Nvidia can grow earnings significantly -CIO
Reuters Videos
Updated Mon, May 6, 2024 at 4:32 PM EDT
STORY: "So the stock has had a huge run, mainly because of earnings being up a lot. So if you look at revenue a year ago was about 25 billion for the data center segment and now that's 100 billion. So the run up has really just been commensurate with the increase in earnings... So we believe based on our research and the companies we speak to across the value chain that there is still a lot of opportunity for these earnings to go higher," said Delevska.
Reasons why Nvidia could see more upside in the months ahead with top strategist
Adam Johnson, founder and author at Bullseye Brief, joins BNN Bloomberg to discuss his view on markets. Johnson says sectors such as Utilities could see upside in case of a Trump victory given a Trump administration would be less inflationary. He also discusses why he expects more upside for Nvidia even as the stock has risen 90 per cent year to date.
This soars past $1000 by end of week after next
Split incoming
Nvidia and Microsoft: Mizuho Chooses the Best AI Stocks to Buy in May
Michael Marcus
May 05, 2024, 06:11 PM
Artificial intelligence, especially the newer generative AI technology, made a splash when it hit the scene, and we’re still watching to see just how the waves will break. In the tech world, innovators and companies are working to adapt and incorporate AI into their businesses – but for investors, the question is, how to cash in?
The top analysts at investment firm Mizuho are working to answer that question, and to give a set of concrete recommendations on the best AI stocks to buy in this month of May. And, their answers shouldn’t surprise us; they see market-leading companies reaping solid gains from AI, building on the combination of their existing positions, their existing work in AI, and the potential profits going forward.
Specifically, the analysts are recommending Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT), two of the largest companies on Wall Street, each valued at more than $2 trillion by market cap. These are big names in the tech world, leaders in their niches, and they have proven records for generating profits and returns. Let’s take a closer look at them, through Mizuho’s lens, to find out what investors can expect for the months to come.
We’ll start with Nvidia, the fast-rising leader of the semiconductor chip industry. Nvidia’s stock has gained an amazing 222% over the past year and become one of just four Wall Street firms valued at more than $2 trillion. Nvidia’s sustained gains have come on the back of its dominance in the realm of AI-capable processor chips. The company invented the GPU chip back in 1999, as a high-end processor aimed at the graphics-intensive computer gaming market. The chips proved adaptable and became popular with professional graphic designers. More recently, Nvidia’s GPUs found widespread use in the data center industry and in AI applications.
The close link between Nvidia and AI tech is illustrated by the company that brought us the current generative AI wave, OpenAI. The AI company is an important customer for Nvidia, and just last month, the two companies publicized Nvidia’s release of the new DGX H200 chip to OpenAI. The H200 is Nvidia’s successor product to the successful H100 AI supercomputer chip and represents a substantial increase in high-performance computing capacity.
Nvidia’s business is much wider than just OpenAI, however. The company has collaborations with both Google and Amazon, providing AI-capable hardware to support Google’s open language models and Amazon’s popular AWS subscription cloud. The company released multiple AI-capable products in its last fiscal quarter and provides support for the US government’s National Artificial Intelligence Research Resource program. Nvidia is pursuing its AI business through multiple lines, ensuring that the company does not depend on just one customer.
On the financial side, Nvidia realized $22.1 billion in revenue during its last reported quarter, fiscal 4Q24. That figure was a company record, beating the forecast by $1.55 billion, and representing year-over-year growth of 265%. Of the total, $18.4 billion came from the AI-related data center segment, a figure that made up 83% of the total. The data center business was up 409% from the prior year.
These strong revenues led to strong earnings, with a quarterly non-GAAP EPS result of $5.16. The EPS was up 486% year-over-year and was 52 cents per share better than had been anticipated.
For Mizuho’s 5-star analyst Vijay Rakesh, Nvidia presents a series of strong opportunities, and has high potential to outperform its competition.
“NVDA remains the primary AI/data center accelerator player with strong 90%+ market share, well ahead of main competitors AMD, which is ramping MI300, and Intel, which is shipping Gaudi2/ramping Gaudi3. AI server penetration remains a rather small portion of the overall server market at we believe just ~1% in 2023, with expectations for AI server penetration to potentially reach 11% by 2027E. We believe NVDA should maintain its strong share position as the market leader following the launch of B100 later this year, driving 2.5-6x performance improvements with ASPs up just 25-30% over H100, as NVDA sees Gen AI as a $100T market with greenfield projects from customers driving $250B of investments per year, as well as $250B of brownfield investments,” Rakesh opined.
Rakesh goes on to give NVDA shares a Buy rating, with a $1,000 price target that implies a one-year upside potential of ~13%.
Overall, it’s clear that Mizuho’s upbeat rating is no outlier – Nvidia stock has picked up 41 recent analyst reviews, including 39 Buys and 2 Holds, for a Strong Buy consensus rating. The stock is selling for $887.89, and its $1,005.59 average target price suggests it will gain 13% in the year ahead.
Just realized. Personally i believer we'll cross $1500 this year, probably a split around $1000
Wall Street Analysts Predict a 37.56% Upside in Nvidia (NVDA): Here's What You Should Know
Zacks Equity Research
September 14, 2023
4 min read
Nvidia (NVDA) closed the last trading session at $454.85, gaining 4.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $625.68 indicates a 37.6% upside potential.
The mean estimate comprises 34 short-term price targets with a standard deviation of $112.71. While the lowest estimate of $460 indicates a 1.1% increase from the current price level, the most optimistic analyst expects the stock to surge 141.8% to reach $1,100. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
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However, an impressive consensus price target is not the only factor that indicates a potential upside in NVDA. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You Should Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
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They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why NVDA Could Witness a Solid Upside
There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There’s always two sides but ai can do a lot of good as long as society weeds out bad actors and ai checks ai
In a “staggering” revelation, Meta AI chief Yann LeCun confirmed that Meta has obtained $30 billion worth of NVIDIA GPUs to train their AI models. Enough to run a small nation or even put a man on the moon in 1969.
Speaking at the Forging the Future of Business with AI Summit organised by Imagination in Action, LeCun said that more variations of Llama-3 would be out over the next few months, with training and fine-tuning currently taking place.
“Despite all the computers we have on our hands, it still takes a lot of time to fine-tune, but a bunch of variations on those models are going to come out over the next few months,” he said.
Speaking of fine-tuning and training, host John Werner stated that Meta had bought an additional 500,000 GPUs from NVIDIA, taking the total number of NVIDIA GPUs up to a million, with a retail value of $30 billion.
They did
Meta Spends $30 Billion on a Million NVIDIA GPUs to Train its AI Models
Nvidia's Stock Is Still A Bargain
May 02, 2024 1:18 PM ETNVIDIA Corporation (NVDA) Stock, NVDA:CA StockAAPL, AAPL:CA, AMD, AMD:CA, INTC, INTC:CA, TSM, TSMWF6 Comments
KM Capital profile picture
KM Capital
1.4K Followers
Summary
My previous thesis about Nvidia Corporation has aged well, as the stock has appreciated by 18% since February 7, outperforming the S&P 500.
Nvidia Corporation delivered strong fiscal Q4 financial results with revenue growth of 265% YoY and a significant EPS improvement.
The company's investments in R&D, dominance in the GPU space, and new Blackwell platform position it well for future growth.
My valuation analysis suggests that Nvidia stock is 34% undervalued.
Nvidia Quadro K1200 from a powerful workstation isolated on white
Daniel Chetroni
Introduction
I shared a thesis about NVIDIA Corporation (NASDAQ:NVDA) in early February 2024 with a "Strong Buy" rating. It appears that my optimism was justified because the stock has appreciated by 18% since February 7, while the S&P 500 (SP500) was flat. Today I want to share my insights about recent developments around NVDA from the fundamental analysis perspective.
The demand for GPUs, where Nvidia dominates, appears to be still robust. Nvidia continues investing heavily in innovation, which will likely help the company maintain its position at the forefront of the AI revolution. My discounted cash flow ("DCF") analysis suggests that the stock is still attractively valued, and I am inclined to reiterate a "Strong Buy" rating for NVDA.
Fundamental analysis
NVDA delivered another staggering quarter on February 21 with a $1.5 billion revenue beat against consensus estimates. The positive EPS surprise has also been wide from the company. Revenue grew by 265% YoY and the non-GAAP EPS skyrocketed from $0.88 to $5.16. The EPS profile improvement was achieved thanks to a massive operating leverage as NVIDIA's profitability ratios demonstrated strong improvements shown below.
Chart
Data by YCharts
The company continues capitalizing on its dominance in the GPU space, where NVDA holds an 80% market share. The demand for GPUs is still robust as software companies continue their artificial intelligence ("AI") battle. For example, a couple of weeks ago, Meta Platforms, Inc. (META) introduced its Llama 3 large language model ("LLM"). This model was trained on Nvidia's H100 Tensor Core GPU's.
Another big positive sign is that Nvidia does not only provide hardware for Meta's LLM, but provides a comprehensive solution which also includes software and libraries. The fact that Nvidia partners with giants like META as an ecosystem, and not just a hardware provider, makes META's switching costs much higher and provides NVDA with a moat.
However, Nvidia does not only aim LLMs, but also has a solid footprint in a domain called "real-world AI." During the latest Tesla, Inc. (TSLA) earnings call, Elon Musk shared insights which seem very beneficial for NVDA. He said that his company plans to become the third-largest Nvidia customer because his AI initiatives like autonomous driving ("FSD") and Robotaxi require loads of computing capacity.
Tesla might ultimately deploy 85,000 Nvidia H100 chips by the end of 2024 to train its AI models. This acknowledgement from the world's largest EV company and the most technologically advanced automotive manufacturer is an obvious indication of Nvidia's dominance from the technological perspective.
Chart
Data by YCharts
These are massive positive news for NVIDIA which happened just within the last two weeks, indicate that the momentum in AI is still robust. What is most important is that Nvidia likely remains at the forefront of this secular shift. According to wccftech.com, Advanced Micro Devices, Inc. (AMD) increased its GPU market share in Q4 2023 by two percentage points at Nvidia's expense. However, as the gap between these two companies' investments in R&D is widening and the difference amounts to billions of dollars, I think that AMD has a limited potential to further expand its market share against NVDA. Furthermore, I have confidence in Nvidia's positioning against AMD not only due to higher R&D spending, but also due to the visionary talent of the company's management.
In my previous thesis, I have underlined that Nvidia CEO Jensen Huang and his team have been disrupting the GPU industry for more than the last three decades, and this year's GTC 2024 event has increased my confidence that Nvidia will continue disrupting the way the digital world works. This is crucial because Nvidia does not want to only compete in current markets, but create new markets, "Blue Oceans" as it is called in one famous book.
I am not an AI chips expert, but the new Blackwell platform, which was presented during GTC 2024, appears to mark a significant leap in computing. According to amax.com, this solution is multiple times more powerful than the company's legacy products and performs with much more efficient energy consumption, which will likely lead to lower cost of ownership for data centers. Blackwell's technological superiority is also highlighted by Alex McFarland, an AI expert, who said that Nvidia is setting new industry standards in the realm of AI processing with the company's new platform.
To summarize, Nvidia remains at the forefront of the AI innovation, and its recent release of a disrupting Blackwell architecture appears to be a new standard for the AI solutions industry. The company's investments in R&D outweigh its closest GPU competitor, AMD, by billions of dollars, which likely helps the company to sustain its dominance in the space. I think that having a dominant position in the emerging industry will enable Nvidia to sustain its stellar pricing power, which will ultimately result in expanding profitability for longer.
Valuation analysis
Despite almost a 10% decline in the stock price over the last month, NVDA still has a strong Quant Momentum rating. After the last 12 months' 187% rally, the company's market cap reached $2.13 trillion, and currently NVDA is the third largest U.S. company by market cap after Microsoft Corporation (MSFT) and Apple Inc. (AAPL).
NVDA
SA
Some investors and experts consider NVDA to be substantially overvalued, but I do not think so. First, let me show you how NVDA's forward valuation ratios look against other prominent semiconductor names. The company's forward non-GAAP P/E ratios look in line with Broadcom Inc. (AVGO) and AMD, and the non-GAAP PEG is also sound.
NVDA ratios vs compeititors
SA
Of course, Nvidia's TTM metrics are substantially higher than all rivals. Nvidia's all valuation ratios are also sky-high compared to QUALCOMM Incorporated (QCOM) and Intel Corporation (INTC). However, TTM ratios give us a rear-mirror view, and investing in assets is all about their future potential to deliver growth and profitability. From the perspective of growth, none of the above-mentioned rivals are anywhere close to Nvidia. Therefore, I think that Nvidia's high TTM metrics are justified, which we see from sound long-term forward metrics.
NVDA valuation
SA
Now I must figure out my target price for NVDA, which I will do with the help of the discounted cash flow ("DCF") model. Future cash flows will be discounted with a 9.5% WACC. Due to the positive factors for NVDA's long-term prospects which I share in "Fundamental analysis," I reiterate my aggressive 7% constant growth rate assumption which I used last time for the terminal value ('TV') calculation. From the revenue perspective, I rely on consensus estimates for the base FY 2025 and project a 22.5% CAGR for the next five years. I use a 32.61% TTM levered FCF margin and expect NVDA to be effective in exercising its pricing power, which will help in expanding its FCF margin by 100 basis points yearly. According to Seeking Alpha, there are 2.46 billion outstanding NVDA shares.
NVDA DCF valuation
Calculated by the author
My DCF model suggest that NVDA's shares are 34% undervalued and the target price for the next twelve months is $1,114. That said, the stock is still very attractively valued. I see it both from the multiples and DCF points of view.
Mitigating factors
Recent developments around other big semiconductor names suggest that investor sentiment around semiconductors is cooling down. AMD's stock saw a notable recent sell-off, even after a solid Q1 earnings release with decent guidance on April 30. Intel also reported recently, and the stock suffered a sell-off, but INTC's report was indeed weaker than Wall Street analysts expected. While competitors' struggles might be good for Nvidia from the strategic point of view, as a leading semiconductor company in the world, NVDA's share price is vulnerable to the overall sentiment around the semiconductor industry. This might be a short-term headwind for the share price, and investors should be aware of it.
The American technology sector is full of bright and ambitious, visionary leaders. Not all of them like the monopoly of Nvidia in the GPU market, and I believe that Nvidia's success is a good role model for the new generation of visionary CEOs. For example, Sam Altman from OpenAI wants to build his alternative to Nvidia in GPUs and reshape the industry. While his initiative apparently does not look like an overnight venture, I think that even potential positive headlines regarding Mr. Altman's initiatives developing in this direction might be absorbed by the market as a mounting threat to Nvidia's long-term prospects which will likely undermine the stock price.
There is a great deal of geopolitical uncertainty not only caused by the complex relationships between China and the U.S., but also due to the historical tensions between China and Taiwan. This factor is crucial because Nvidia outsources its manufacturing to the Taiwan Semiconductor Manufacturing Company Limited (TSM) and the supply chain heavily depends on the stability of TSM's operations. I agree that the probability of an armed conflict between China and Taiwan is extremely low, but recent years taught us that even non-military measures like economic sanctions might substantially disrupt business operations. I think that this risk should also be weighted by investors before they decide to opt into NVDA.
Conclusion
Nvidia is likely to remain the dominant force in the emerging advanced chips industry, thanks to its heavy investments in R&D and the visionary talent of its management. The demand for the most powerful GPUs appears to remain strong for longer, which is a big tailwind for NVDA. I think that NVDA is still a "Strong Buy," also because of its still attractive valuation.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
This article was written by
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KM Capital
1.4K Followers
NVIDIA has introduced DLSS 3.5 with Ray Reconstruction to Portal with RTX, a reimagining of Valve's hit game with full ray tracing, or path tracing. Moreover, the feature will soon be available for modders in RTX Remix Open Beta so they can revive classic games with better graphics.
"DLSS Ray Reconstruction is an enhanced AI-powered neural renderer that improves ray-traced image quality for all GeForce RTX GPUs by replacing hand-tuned denoisers with an NVIDIA supercomputer-trained AI network, which generates higher-quality pixels in between sampled rays."
So players will be able to enjoy improved fidelity of full ray tracing and dynamic lighting effects as Ray Reconstruction updates lighting effects faster. As a result, "certain patterns associated with reflections are recognized, keeping the image stable and generating high quality reflections."
"Additionally, Ray Reconstruction greatly improves the clarity and fidelity of water reflections, eliminates light speckle artifacts on fine details, such as chain link fences, eliminates ghosting on moving objects, such as ventilation fans, and increases the fidelity of shadows cast from aforementioned moving game elements."
According to NVIDIA, DLSS 3.5 with Ray Reconstruction multiples frame rates on GeForce RTX GPUs up to 6.7 times.
Furthermore, NVIDIA RTX IO, also added to Portal, improves GPU-based loading and game asset decompression, so the game is faster and better looking.
NVIDIA Sets Conference Call for First-Quarter Financial Results
CFO Commentary to Be Provided in Writing Ahead of Call
May 1, 2024
NVIDIA will host a conference call on Wednesday, May 22, at 2 p.m. PT (5 p.m. ET) to discuss its financial results for the first quarter of fiscal year 2025, which ended April 28, 2024.
$NVDA JENSEN HUANG'S MASSIVE MIC DROP:
"Our total cost of operations is SO GOOD that even when the competitors' chips are FREE, it's not cheap enough"
Buy Alert: Nvidia Stock Is Still THE Semiconductor Player to Own
May 1, 202406:00 EDT
NVDA
-1.54%
SMCI
-3.54%
After a scary drop earlier in April, Nvidia
NVDA
stock has roared back to life, proving its resilience and that it is the best semiconductor company to own long term. From April 11 to 19, NVDA stock fell by 16%, with a 10% drop in a single day. The company’s shares seemed poised for a significant decline.
Fortunately, the stock quickly bottomed and has come storming back, rising 15% in a week and recovering almost all of its losses. The quick rebound in Nvidia stock comes as analysts continue to issue bullish outlooks for the company, favoring it as a best-in-class semiconductor play.
Upside Ahead for NVDA Stock
Much has been made of the meteoric rise of Nvidia’s stock since the current bull market began in October 2022. Despite some short-lived volatility, NVDA stock has more than tripled in the past 12 months (up 216%).
Nvidia is the second best performer in the benchmark S&P 500 index year to date, having gained 82% since January. Only Super Micro Computer
SMCI
has performed better. Yet for all its success, analysts see more upside ahead for Nvidia.
Currently, the median price target on NVDA stock among 41 Wall Street analysts who cover the company is $1,004 per share. That’s 15% higher than where the stock currently trades.
The consensus rating on Nvidia stock is a “strong buy.” Among the 41 analysts, 39 of them have a “buy” rating on the stock, while two have a “hold” rating. There are no “sell” ratings on NVDA stock at present. Analysts at KeyBanc recently raised their price targeton Nvidia stock to $1,200 and reiterated their “buy” rating.
Reasons to Be Bullish
Analysts are bullish on Nvidia stock for several reasons. The company knocked the cover off the ball with its most recent earnings print for the final quarter of last year.
Nvidia’s sales rose 265% from a year earlier and profits grew 769% year over year, fueled by white hot demand for the company’s chips that are used in artificial intelligence applications, chatbots and models. The guidance issued by Nvidia was also strong. The company is scheduled to report first-quarter results on May 22.
Enthusiasm for Nvidia stock only strengthened after the company unveiled in March its next generation AI microchips called the “Blackwell” series. The first Blackwell chip is called the “GB200” and will ship later this year.
The company also introduced revenue-generating software called “Nvidia Inference Microservice” for use with its Nvidia enterprise software subscription. Management has said that Nvidia is moving to become less of a microchip provider and more of a platform provider.
More recently, Nvidia announced plans to build a $200 million AI center in Indonesia as it expands across the critically important region of Asia. Nvidia’s three biggest markets in terms of revenue generation remain America, Taiwan and China.
While numbers can vary somewhat, the latest estimates place Nvidia’s share of the global market for chips that power AI applications at between 75% and 80%, showing the company’s continued dominance of the sector.
Buy Nvidia Stock
Nvidia stock has been extremely successful, having risen more than 1,800% in the last five years. That success looks certain to continue as the company dominates the market for microchips and semiconductors that power AI.
Analysts remain extremely bullish on Nvidia due to strong demand for its chips, exceptional earnings growth, and new products that will keep the company ahead of its competitors. Investors should be equally bullish. Nvidia stock is a buy.
Noble Capital Starts SKYX Platforms With Outperform Rating, $5 Price Target
No idea which Noble capital as there are several, some charge
Supermicro and NVIDIA have a double-edged sword relationship. The relationship exposes Supermicro to supply chain constraints and soaring chip prices. In early 2023, Supermicro struggled to secure a steady supply of NVIDIA's GPUs. Supermicro also doesn't hold any long-term agreements with NVIDIA or its other suppliers that actually lock them in as exclusive partners.
AMD and Super Micro tumbling, IMHO due to Nvidia growing
NVIDIA RTX Remix gets DLSS 3.5 Ray Reconstruction support
AMD bad news is good news for Nvidia, just wait
NVDA’s Earnings Runway: How Nvidia Stock’s Long-Term Growth Story Makes it a Screaming Buy
Nvidia stock investors won't be wondering "what's next" for long
Investors are growing increasingly worried about “what’s next” for big winners in the space like Nvidia (NVDA).
However, recent developments strongly suggest that this early-mover in the space keeps charging ahead.
Buy Nvidia stock before the pullback turns into a bounce back.
There’s no getting around it. Top AI stocks like Nvidia (NASDAQ:NVDA) have lost momentum. However, the market’s sudden worrying about “what’s next” for big AI winners like Nvidia stock may end up being an advantageous turn of events, for investors entering or adding to positions right now.
Even as a growing number of market participants have been thinking that this AI chip designer’s shares have finally topped out, that may prove to ultimately not be the case. In fact, the next big run-up for shares could be just around the corner.
The market may think “what’s next,” but this early-mover in this fast-growing segment of tech continues to charge ahead, with efforts to level up on its success thus far. With this, while the weakness still lasts, you may want to seize the opportunity, as we’ll explain below.
Nvidia Stock: On the Verge of a Pre-Earnings Rebound?
As recently discussed, two key factors have weighed on shares over the past few weeks. First, there has been increased concern about a slowdown in demand for AI chips. Second, as rival semiconductor companies ramp up their efforts to capitalize on the generative artificial intelligence trend.
There have also been concerns that this too will negatively affect Nvidia’s growth going forward. In the same article, we argued these worries could prove overblown, once the company next releases earnings on May 22. However, considering more recent developments, a rebound for Nvidia stock could arrive far sooner.
May 22
They are brand new, cheaper than a Corolla
The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into Ford's BlueCruise hands-free driving technology after two fatal crashes involving Mustang Mach-E electric SUVs.
Posted to wrong board, should be Tesla board
The National Highway Traffic Safety Administration (NHTSA) has launched an investigation into Ford's BlueCruise hands-free driving technology after two fatal crashes involving Mustang Mach-E electric SUVs.
Investors who bet against Tesla stock have lost $5.5 billion in the four sessions since the electric car maker promised more affordable cars, according to data from S3 Partners.
Good luck, this is only the beginning of the accent!