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Why Nvidia’s stock looks especially juicy in the near term, according to Citi
Published: April 15, 2024 at 9:10 a.m. ET
By Emily BaryFollow
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Citi thinks investors can capitalize on recent profit-taking as chip-sector earnings are likely to hold good news for Nvidia
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Nvidia Corp. was the S&P 500’s best-performing stock in 2023 — by a wide margin — and trails only Super Micro Computer Inc. thus far in 2024.
Even with 78% gains for Nvidia shares NVDA, 0.21% so far year, Citi Research analyst Atif Malik sees the potential for further upside in the near term. He opened a 90-day positive “catalyst watch” on Nvidia shares Monday morning.
Nvidia shares have fallen about 7% from their peak close, and Malik sees opportunity following that “profit taking.” His recent conversations with those in the supply chain have indicated good demand visibility into the first half of 2025.
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Read: Nvidia just keeps getting stronger, and that could be trouble for this stock
“We expect supply-chain commentary from key foundry/[high-bandwidth memory] suppliers during earnings and Computex Taiwan on June 2nd where Nvidia CEO Jensen Huang will deliver a keynote…could be positive catalysts for the stock,” he wrote.
Heading into earnings, Citi analyst Christopher Danely added that his checks revealed that “investors are most positive on Nvidia and [Broadcom] driven by AI driving upside to estimates.”
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Shares of Nvidia were up almost 1% in premarket trading Monday.
Piper Sandler analyst Harsh Kumar also weighed in positively on Nvidia.
“Demand for the Hopper GPU which has been on the market for nearly two years remains strong as chips remain in allocation mode,” he wrote. “We note that supply for the product has increased [quarter over quarter] but still has yet to catch up with demand and this dynamic is expected to continue through the year.”
Don’t miss: Nvidia’s stock has had a killer run. Why it’s still Morgan Stanley’s top AI-chip pick.
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Meanwhile, Nvidia’s new Blackwell line “is expected to experience similar supply/demand dynamics of Hopper with supply needing to catch up over many quarters,” but customers don’t seem to be yanking their Hopper orders in anticipation of Blackwell’s release.
“This is due to fears that supply for Blackwell will be constrained as the product ramps and customers will have to wait even longer to receive the accelerators,” Kumar said.
Nvidia Stock Is a Bona Fide Buy Before the Next Blastoff
Apr 15, 202406:45 EDT
NVDA
-2.68%
Nvidia
NVDA
stock may just well continue to zig-zag between $850 and $950 per share. However, while it may not make its move tomorrow, or next week, the coming weeks are another matter. A spate of promising updates could help propel NVDA to over $1000 per share for the first time.
That’s not all. Rather than weakening, the long-term bull case for Nvidia continues to strengthen. As I’ll explain below, both these factors point to now being an opportune time to enter a position.
Nvidia Stock: Primed to Rally Ahead of Earnings?
Nvidia’s release date for its results during the quarter ending Jan. 31 has yet to be set, but based on the dates of prior earnings releases, it is likely to happen some time in late May. Previously, we have discussed why the company is likely to report strong resultsin this upcoming earnings release.
Mostly, because the big tech giants, in their quest to dominate the AI software space, continue to buy Nvidia’s AI-compatible chips hand-over-fist. However, don’t assume this means Nvidia stock will only rally post-earnings.
As Barrons’ Adam Clark argued on April 12, earnings releases from Nvidia’s big tech customers could provide an indication of whether AI chip demand remains strong, or if there is validity to concerns about a slowdown in AI chip purchases.
Many of these key customers next report earnings later this month. Nvidia’s next major rally could be just a few weeks away. That said, don’t get me wrong. Yes, there may be the opportunity to enter a profitable pre-earnings swing trade with this stock.
However, the real opportunity with NVDA has, and continues to be, long-term in nature.
A Clear Path to Stay at the Top
Forget about Nvidia stock merely hitting $1000 per share, followed up by a slower pace of price appreciation. More big leaps to loftier price levels remain within the realm of possibility for NVDA in the next year or two.
It all has to do with the stock’s continuously-strengthening long-term bull case.
Yes, there’s much out there suggesting there is rising uncertainty about Nvidia. Primarily, regarding future AI chip demand trends, as well as rising competition. Just as near-term fears of an AI chip demand slowdown are shortsighted, the same could be said about long-term demand slowdown fears.
Big tech’s buildout of its AI infrastructure may be the key demand driver now, but new user markets are emerging. Examples include AI-PC chips, plus emerging non-tech end-user markets like automotive and government. Investors today are likely overreacting to the threat of competition as well.
As BofA analyst Vivek Arya argues, Nvidia remains well-positioned to keep dominating the AI chip market. Even a few years down the road, when the annual size of this market goes from $90 billion to $200 billion, this AI early mover could have 75% market share.
The Verdict: Still a Strong Buy, for the Near and Long-Term
Again, positive developments for Nvidia are on the horizon. These could drive the next near-term liftoff for NVDA. In the quarters ahead, positive factors like the rollout of Nvidia’s Blackwell line of AI chips could enable the company to keep on beating expectations.
This would undoubtedly keep the stock on an upward trajectory. Over a multi-year time frame, where Nvidia stays at the top of the AI chip heap, continuing to deliver forecast-beating numbers, a move to $1500 per share is well within reach.
The top end of forecasts call for NVDA to report earnings of $46.37 per share in the coming fiscal year January 2026. Even if shares experience some multiple compression, this could justify a move to the $1500 per share mark.
Still a strong buy, for the near and long-term, it’s time to pounce on Nvidia stock.
Nvidia stock earns an A rating in Portfolio Grader.
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
2 Reasons to Buy Nvidia Stock Like There's No Tomorrow
By John Ballard – Apr 15, 2024 at 3:20AM
KEY POINTS
Demand for Nvidia's GPUs is not slowing down, and management expects revenue to triple in the first quarter.
Data centers are buying GPU systems for artificial intelligence (AI) workloads, which is expected to accelerate data center infrastructure spending this year.
Nvidia generates sky-high margins on data center sales, so growing demand for GPUs should fuel profits and support the stock’s valuation.
Nvidia might have the most profitable strategy to benefit from AI.
Nvidia (NVDA -2.68%) delivered stunning growth over the last year. Graphics processing units (GPUs) are the hot commodity for powering artificial intelligence (AI) in data centers, and Nvidia has long dominated the GPU market.
The shift to AI is driving an increase in data center investment, which provides a tailwind for Nvidia. The company expects revenue to triple year over year in the first quarter to $24 billion, but looking at its long-term prospects, there are two important reasons this AI stock still has room to run.
1. Growth in AI infrastructure spending
Data center products are Nvidia's largest revenue source. This segment drove 83% of its $22 billion in revenue in the most recent quarter, so the investment in data center infrastructure is vital to Nvidia's growth.
In 2023, spending on data centers by the 10 largest cloud service providers totaled $260 billion, according to Dell'Oro Group. AI-related spending is growing much faster than the overall data center market, and this is reflected in Nvidia's numbers. The company's revenue more than doubled last year to nearly $61 billion.
NVDA Revenue (TTM) Chart
DATA BY YCHARTS
In 2024, Dell'Oro expects total spending on data center infrastructure to accelerate to 11%, driven by investment to support new applications powered by generative AI. Other companies are pointing to high demand for Nvidia's chips. Dell Technologies, an Nvidia customer, said its backlog for AI-optimized servers nearly doubled in its most recent quarter.
It's important to remember that Nvidia offers more than just GPUs. It also supplies software and systems, which is a lucrative opportunity.
2. Nvidia will squeeze every ounce of profit out of this opportunity
For all the hype around Nvidia's market-leading AI chips, the company doesn't get enough credit for a how smartly it positions its products for profitable growth.
For many years, Nvidia positioned its gaming GPUs to allow for increases in average selling prices as gamers upgraded to the latest graphics cards. This fueled its profits and generated good returns for shareholders. The company's approach in the data center business is similarly designed to generate high returns.
For instance, Nvidia doesn't just sell individual chips to data centers; it bundles them in a system. Nvidia's DGX system includes eight H100 GPUs, which individually are quite expensive. The additional software and services Nvidia offers on top of its hardware adds a lot of value that it can monetize with high margins.
Nvidia's net income grew 581% last year to nearly $30 billion, or almost half of its total revenue. The high profit margin Nvidia generates from sales makes the stock a solid long-term investment.
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NASDAQ: NVDA
Nvidia
Today's Change
(-2.68%) -$24.30
Current Price
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Market Cap
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Nvidia will face competition. Intel and Advanced Micro Devices are already working on AI chips to compete with Nvidia, but Nvidia is the innovator in GPU technology, and its recent growth spurt gives it a tremendous advantage in financial resources to protect its lead in the GPU market.
Analysts currently expect Nvidia to grow earnings per share by 35% on annualized basis over the next few years. The stock won't continue to double every year, but with management estimating its data center opportunity to be worth $1 trillion, there's enough runway for shares to hit new highs over the next decade.
Israel will retaliate and should. My best guess is that Iran stands down as the alternative could be off the map. Markets should react positivity
Positive as Iran has now shown to be a paper tiger
Bloomberg
@business
·
17h
Sales of electric vehicles have now passed a critical tipping point for mass adoption in 31 different countries, according to a Bloomberg Green analysis
Nvidia Dominates AI Market with Powerful Blackwell GPUs
APRIL 13, 2024 BY ROMAN REMBER
Nvidia continues to reign supreme in the realm of artificial intelligence, with its stock experiencing a notable surge of 209% in the past year. Nvidia’s trajectory seems unshaken by the market’s dynamic shifts or the entrance of competitors crafting their own AI chips. Nvidia CEO Jensen Huang has highlighted the immense potential for growth that the current trend toward accelerated computing and AI presents for the company.
At the heart of Nvidia’s advancements lies their newly unveiled Blackwell GPUs, unveiled at Nvidia’s annual GTC Conference. These chips boast performance metrics that are 2.5 to 5 times superior to the previous generation, which has significantly raised expectations for Nvidia’s footprint in the AI accelerator market.
Despite a saturated market with big players such as Meta Platforms and Google delving into AI chip production, Nvidia appears to maintain a strong foothold, with experts predicting that it could hold onto up to 75% of the market share. The directives in China for telecom carriers to phase out foreign chips by 2027 may have driven tech stocks down, but Nvidia’s resilience in its biggest markets and its leading-edge products suggest a solid future.
Emphasizing scalability and versatility, Nvidia not only produces cutting-edge chips but also offers comprehensive full-stack solutions, distinguishing it from other semiconductor players. With analysts reasserting confidence in its stock stability despite potential short-term shifts and an anticipation for robust demand for their AI solutions, Nvidia stands well-prepared to navigate the dynamic markets ahead.
Current Market Trends
The current market for AI chipsets is increasingly competitive. With advancements in AI and machine learning applications across various sectors—from autonomous vehicles and healthcare to finance and retail – demand for more powerful AI chips is soaring. Nvidia’s release of the Blackwell GPUs aligns with this trend, meeting the need for more efficient processing power for complex AI algorithms.
Companies like AMD, Intel, and various startups are also developing AI-specific processors, aiming to challenge Nvidia’s dominance. However, Nvidia’s comprehensive ecosystem, including software (such as CUDA and cuDNN) and hardware solutions, often places it ahead of rivals who may only offer individual components.
Forecasts
Market analysts forecast that the AI market will continue to expand at a rapid pace. The AI semiconductor market itself is expected to grow significantly in the coming years, with an estimated compound annual growth rate (CAGR) of around 40% from 2021 to 2026. Nvidia, with its strong research and development in AI and machine learning, is well-positioned to benefit from this growth.
Key Challenges and Controversies
One of the key challenges facing Nvidia is geopolitical tensions, particularly the US-China tech war which may affect its sales and manufacturing supply chains. Additionally, stringent export controls could limit Nvidia’s reach in international markets. Furthermore, the environmental impact of producing and operating powerful GPUs is a topic of concern among sustainable investment groups and environmentalists.
Advantages and Disadvantages of Blackwell GPUs
The advantages of Nvidia’s Blackwell GPUs include their superior performance, energy efficiency, and versatility, making them suitable for a range of applications from data centers to edge computing. This gives Nvidia an edge in securing contracts and partnerships in various tech sectors.
However, the disadvantages may include the high cost of Nvidia’s GPUs compared to competitors, which may limit their adoption in cost-sensitive markets. The complexity of Nvidia’s technology might also present a steep learning curve for new customers.
Conclusion
Nvidia’s resilient performance in the stock market and the significant advancements represented by their Blackwell GPUs showcase the company’s strong presence in the AI sector. Despite facing competition and market challenges, Nvidia remains at the forefront of AI technology, well-prepared for current and future market demands.
For those interested in exploring more about Nvidia, you can visit their official website with the following link: Nvidia Official Website.
Here's what could lead to Nvidia's next boom
13.04.2024
Shares of Nvidia ( NVDA ) were slightly lower at the start of the day on Friday, although the week was generally positive after briefly entering correction territory.
Investors are now turning their eyes to upcoming earnings reports from major tech companies, focusing in particular on any indication of increased investment in artificial intelligence (AI) technologies.
Shares of Nvidia fell 1.6% to $891.68 in early trading on Friday, after rising 4.1% to $906.16 at the close on Thursday.
Despite starting the week at levels around $830, Nvidia shares have rebounded, though they are still short of their recent highs near $950. Whether the stock moves beyond that range may depend on signs of increased customer spending, particularly on Nvidia's new line of Blackwell chips, as the tech giants report earnings in the coming weeks.
Nvidia shares held steady despite a flurry of AI chip announcements from rivals such as Intel, Google Alphabet and Meta Platforms during the week. Marvell Technology also jumped into the fray on Thursday, announcing at an event the addition of a third hyperscale cloud company to its list of AI clients.
Marvell has revealed plans to manufacture an AI accelerator for this unnamed customer, with production to begin in 2026. Analyst Christopher Roland of Susquehanna Financial Group speculated that the mystery customer could be Microsoft.
Shares of Nvidia are up 83% year-to-date through Thursday's close, outpacing the S&P 9.0's 500% gain and the Nasdaq Composite's 9.5% gain over the same period.
How Is Nvidia Cheaper Than Microsoft?
April 13, 2024 — 07:30 am EDT
Written by Keithen Drury for The Motley Fool ->
The term "cheaper" in investing can mean many different things. It could be that the stock price itself is cheaper, but this is a very narrow definition and honestly not incredibly helpful in the days of fractional shares. There are also connotations about future growth or by what metric a stock is valued.
For many people, artificial intelligence (AI) powerhouse Nvidia (NASDAQ: NVDA) looks incredibly expensive. But when compared to the largest company in the world, Microsoft (NASDAQ: MSFT), I'd suggest that it's cheaper. How? Looking at a particular metric is critical in assessing where a company is heading.
There are many ways to assess how expensive a stock is
First, let's get the obvious out of the way. From a dollar basis, Nvidia looks expensive, at around $870 per share. Microsoft is much cheaper, at around $425. However, the stock price is just an arbitrary figure. The stock price is determined by the number of shares outstanding and the company's total value. Either of these two could enact a stock split to change the number of shares and make the stock more or less expensive from a dollar standpoint. This is why looking at the stock price doesn't help investors.
Instead, utilizing a metric to measure how expensive a company is will be a much better measure. For example, the price-to-earnings ratio divides the stock price by how much earnings per share (EPS) the company has, giving a ratio that tells investors how much they must pay for a single dollar of earnings. This is an incredibly useful metric for mature businesses like Nvidia and Microsoft.
One of the best metrics to consider in today's environment is the forward price-to-earnings (P/E) ratio. It's the same as the regular price-to-earnings ratio, except it looks at forward earnings instead of trailing ones. This is critical as companies like Microsoft and Nvidia are rapidly growing and adapting to this new environment filled with AI technology. Because neither company has generated these forward earnings yet, investors must use Wall Street analyst projections to value the business.
This isn't an exact science and can lead to some errors. However, it gives a better picture of where a stock may be heading, which is far more important than where it has been.
Both Microsoft and Nvidia should be valued this way due to their rapid growth. Nvidia's graphics processing units (GPUs) are the best in the business for creating AI models, and companies need to buy thousands of them to create a computer powerful enough to crunch through AI calculations and training. This has shown up in a big way in Nvidia's financial results, like in the fourth quarter of fiscal year 2024 (ended Jan. 28) when its revenue rose 265% year over year to $22.1 billion, and EPS shot up 765%.
Microsoft is implementing OpenAI's ChatGPT into many of its products and charging a premium to use the service. Additionally, its cloud computing service, Azure, is growing in usage. This is due to many customers increasing their use due to developing AI models, something Azure has the computing power to do. Microsoft isn't growing as fast as Nvidia, but its revenue rose a respectable 18% year over year in the second quarter of fiscal year 2024 (ended Dec. 31, 2023), and EPS was up 33%.
Both companies are doing well. But how is Nvidia cheaper?
Nvidia is cheaper than Microsoft in one key way
Returning to the forward-facing mindset, Nvidia's stock trades at a cheaper level than Microsoft.
NVDA PE Ratio (Forward) Chart
NVDA PE Ratio (Forward) data by YCharts
This means that if each company hits its earnings projections over the next 12 months, Nvidia will be cheaper from a more traditional trailing earnings perspective if the stock prices don't move.
Much of this disparity comes from the expectations for Nvidia to grow massively, as Wall Street analysts expect 81% revenue growth this year. Microsoft is expected to grow by 15% this year, but that's still not enough to surpass Nvidia.
So, despite many investors worrying about how expensive Nvidia is, it's cheaper than the stalwart Micorosft. As a result, I think investors should consider investing in Nvidia instead of Microsoft, as it doesn't have near the growth levels despite the hefty price tag.
You Won't Believe My Shocking Nvidia Stock Prediction
By Parkev Tatevosian, CFA – Apr 13, 2024 at 7:28AM
Nvidia is a buy on the pullback and headed toward a $1,150 target, according to chart analyst
PUBLISHED FRI, APR 12 20241:14 PM
NAB 2024: NVIDIA Releases Holoscan for Media Now Available for Developers
By SVG Staff
Friday, April 12, 2024 - 2:45 pm
Print This Story
Whether delivering live sports programming, streaming services, network broadcasts or content on social platforms, media companies face a daunting landscape. Viewers are increasingly opting for interactive and personalized content. Virtual reality and augmented reality continue their drive into the mainstream. New video compression standards are challenging traditional computing infrastructure. And AI is having an impact across the board.
In a situation this dynamic, media companies will benefit most from AI-enabled media solutions that flexibly align with their changing development and delivery needs.
NVIDIA Holoscan for Media, available now, is a software-defined platform that enables developers to easily build live media applications, supercharge them with AI and then deploy them across media platforms.
A New Approach to Media Application Development
Holoscan for Media offers a new approach to development in live media. It simplifies application development by providing an internet protocol (IP)-based, cloud-native architecture that isn’t constrained by dedicated hardware, environments or locations. Instead, it integrates open-source and ubiquitous technologies and streamlines application delivery to customers, all while optimizing costs.
Traditional application development for the live media market relies on dedicated hardware. Because software is tied to that hardware, developers are constrained when it comes to innovating or upgrading applications.
Each deployment type, whether on premises or in the cloud, requires its own build, making development costly and inefficient. Beyond designing an application’s user interface and core functionalities, developers have to build out additional infrastructure services, further eating into research and development budgets.
The most significant challenge is incorporating AI, due to the complexity of building an AI software stack. This prevents many applications in pilot programs from moving to production.
Holoscan for Media eases the integration of AI into application development due to its underlying architecture, which enables software-defined video to be deployed on the same software stack as AI applications, including generative AI-based tools. This benefits vendors and research and development departments looking to incorporate AI apps into live video.
Since the platform is cloud-native, the same architecture can run independent of location, whether in the cloud, on premises or at the edge. Additionally, it’s not tied to a specific device, field-programmable gate array or appliance.
The Holoscan for Media architecture includes services like authentication, logging and security, as well as features that help broadcasters migrate to IP-based technologies, including the SMPTE ST 2110 transport protocol, the precision time protocol for timing and synchronization, and the NMOS controller and registry for dynamic device management.
A Growing Ecosystem of Partners
Beamr, Comprimato, Lawo, Media.Monks, Pebble, RED Digital Cinema, Sony Corporation and Telestream are among the early adopters already transforming live media with Holoscan for Media.
“We use Holoscan for Media as the core infrastructure for our broadcast and media workflow, granting us powerful scale to deliver interest-based content across a wide range of channels and platforms,” says Lewis Smithingham, senior vice president of innovation special operations at Media.Monks, a provider of software-defined production workflows.
“By compartmentalizing applications and making them interoperable, Holoscan for Media allows for easy adoption of new innovations from many different companies in one platform,” says Jeff Goodman, vice president of product management at RED Digital Cinema, a manufacturer of professional digital cinema cameras. “It takes much of the integration complexity out of the equation and will significantly increase the pace of innovation. We are very excited to be a part of it.”
“We believe NVIDIA Holoscan for Media is one of the paths forward to enabling the development of next-generation products and services for the industry, allowing the scaling of GPU power as needed,” said Masakazu Murata, senior general manager of media solutions business at Sony Corporation. “Our M2L-X software switcher prototype running on Holoscan for Media demonstrates how customers can run Sony’s solutions on GPU clusters.”
“Telestream is committed to transforming the media landscape, enhancing efficiency and content experiences without sacrificing quality or user-friendliness,” syas Charlie Dunn, senior vice president and general manager at Telestream, a provider of digital media software and solutions. “We’ve seamlessly integrated the Holoscan for Media platform into our INSPECT IP video monitoring solution to achieve a clear and efficient avenue for ST 2110 compliance.”
Takes you to any address
I'd be really surprised if this is not hitting $1500 before the election, after uæ it's anybody's guess
NBC: Thursday’s analyst calls: Boeing price target cut, Nvidia to rally more than 25%
Drove on latest fsd all day, car took me everywhere and I never had to interfere. People have no clue robotaxi is already here!
Told you the contrarian move last week 😂
Raymond James Just Raised Its Price Target on Nvidia (NVDA) Stock
NVDA also has a 'strong buy' rating
1h ago · By William White, InvestorPlace Writer
Nvidia (NVDA) stock is getting a boost on Thursday from an increased price target.
Raymond James analysts bumped the shares up to $1,100.
That comes alongside a reiterated “strong buy” rating.
Let's see
The fed was too late and too late again. I'd prefer no fed! Now they're a political tool
Headed for penny?
We're on, watch for news
Elon Musk says the next-generation Grok 3 model will require 100,000 Nvidia H100 GPUs to train
M Stanley Hikes NVIDIA (NVDA.US) TP to US$1,000; Biz Continues to Strengthen
http://www.aastocks.com/en/stocks/news/aafn-con/now.1341189/latest-news
The Bull Run In Nvidia Stock Has Only Just Begun. Here’s Why.
It would be foolish to bet against the chipmaker at this point in its incredible growth story
4h ago · By Joel Baglole, InvestorPlace Contributor
Nvidia’s (NVDA) dominance of the AI chip market is growing.
The company’s new Blackwell series of microchips is likely to keep it ahead of its competitors for years to come.
Nvidia’s blockbuster earnings look likely to continue, driving the stock to new heights.
5 AI Stocks to Buy Before They Skyrocket
NVDA stock - The Bull Run In Nvidia Stock Has Only Just Begun. Here’s Why.
Source: Ascannio / Shutterstock.com
After a big run to start the year, Nvidia’s (NASDAQ:NVDA) stock looks to have stalled. But don’t worry. It likely won’t be long before the rally in the chipmaker continues.
In the last month, NVDA stock has dipped 5%. The stock has struggled to rise above $950 per share and has retreated each time it hits that level. However, the current pullback comes after Nvidia had a huge run in January and February. Year to date, the stock is up 83% and a leader in the S&P 500 index. The current dip is likely only a temporary breather before NVDA stock again runs flat out. As such, investors would be smart to buy the dip.
7 AI Stocks With “Millionaire Maker” Potential in 2024
Blockbuster Earnings
The rally in Nvidia’s stock that began in earnest at the start of 2023 has pushed the company to some important milestones. Earlier this year, Nvidia’s market capitalization crossed the $2 trillion mark and it is now the third largest publicly traded company in the world after Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). The company’s influence on the market is growing and the main catalyst for NVDA stock continues to be the company’s earnings.
Since last summer, the stock market literally pauses in the days ahead of Nvidia’s earnings reports. It’s as if investors and traders are holding their collective breath to see if the company can exceed the lofty expectations that have been set for it. So far, Nvidia hasn’t disappointed and the entire market rallies after the company beats Wall Street’s forecasts. In February, Nvidia reported earnings that covered the final quarter of 2023 that crushed expectations and showed mind boggling growth at the microchip and semiconductor maker.
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Fueled by unrelenting demand for its microchips and semiconductors among artificial intelligence (AI) companies around the world, Nvidia reported that its Q4 2023 sales rose 265% year over year, while its profits grew 769% from a year earlier. All metrics topped analysts’ estimates, and the guidance provided was even better. For the just completed first quarter of the year, Nvidia has forecast sales of $24 billion. If achieved, that would be up 234% from sales of $7.19 billion a year earlier. Can Nvidia do it again? There’s no reason to doubt the company at this point.
Keeping Pace
The big question concerning Nvidia on Wall Street is how long can the company continue to exceed the sky high expectations that have been set for it? After all, the comparables the company faces are only getting tougher. At some point, Nvidia will fail to jump the bar that’s been set for its earnings and the stock will crash, right? Maybe not. Nvidia is continuing to pull out all the stops to stay ahead of its competitors and ensure that its earnings run at a blistering pace.
7 AI Stocks With “Millionaire Maker” Potential in 2024
In March, Nvidia unveiled its next generation AI microchips at a developer conference. Called the Blackwell series, the first of these new chips, the GB200, is the company’s most powerful technology to date. Specifically, the new GB200 chip includes what Nvidia calls a “transformer engine” that’s designed to run transformer based AI, one of the core technologies underpinning chatbots such as GPT-4. Nvidia is already receiving huge pre-orders from companies such as Microsoft and Meta Platforms (NASDAQ:META).
At the same time, Nvidia has signalled its intention to become less of a microchip provider and more of a platform provider going forward. To that end, the company introduced new revenue-generating software called Nvidia Inference Microservice (NIM) that it will charge a subscription fee for enterprise customers to access. And, Nvidia continues to expand globally, recently announcing plans to build a $200 million AI center in Indonesia as it grows throughout Asia.
Buy NVDA Stock
Nvidia currently controls about three-quarters (75%) of the AI chip market worldwide. That dominance shows no signs of decreasing. If anything, Nvidia’s market share is likely to increase as it begins to deliver its Blackwell series of microchips later this year. While the company’s earnings and stock have produced blockbuster gains over the last 18 months, there’s every reason to believe that the growth will continue. The bottom line is that Nvidia has the expertise and the products to remain the foundation of the AI revolution. For this reason, NVDA stock is a buy.
On the date of publication, Joel Baglole held long positions in NVDA, MSFT and AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
KeyBanc Boosts Price Target on NVIDIA to $1,200 From $1,100, Keeps Overweight Rating
06:59:38 AM ET, 04/08/2024 - MT Newswires
Motley Fool
Here's the $4.7 Trillion Market Nvidia Has Its Eyes on Now
Keith Speights, The Motley Fool
Sun, Apr 7, 2024 at 2:30 PM EDT4 min read
In This Article:
Nvidia (NASDAQ: NVDA) could make the same statement attributed to Julius Caesar: "Veni, vidi, vici." The phrase translates into "I came, I saw, I conquered." The chipmaker has conquered quite a bit since its founding in 1993.
For years, Nvidia made most of its money in the gaming market. More recently, however, the company's growth has come largely from the deployment of its GPUs in data centers. What's the next frontier for Nvidia? Here's the $4.7 trillion market the chipmaker has its eyes on now.
Big moves in a big market
The U.S. spent an estimated $4.7 trillion on healthcare last year. That amounts to roughly 18% of the country's total economic output. Nvidia has recently made several major moves in this big market.
To be sure, healthcare isn't a brand-new focus for Nvidia. The company's technology has been used in healthcare before. For example, Nvidia launched its Clara AI platform for medical imaging in 2018. However, the company appears to have shifted its healthcare efforts into a higher gear.
Nvidia has announced multiple new healthcare collaborations and services over the last few weeks. On March 18, the company introduced a new suite of 25 "microservices" for healthcare organizations. This platform enables customers to integrate generative AI into existing applications.
At its 2024 GTC AI Conference in March, Nvidia announced two major milestones with healthcare giants Johnson & Johnson and GE Healthcare. It's working with Johnson & Johnson to use AI in surgical operations. GE Healthcare used Nvidia's technology to develop a model for analyzing ultrasound images.
How AI (and Nvidia) could transform healthcare
It's not an exaggeration to say that AI holds the potential to transform healthcare. How? Let's start with diagnosing diseases. AI has already shown tremendous promise in analyzing medical images, as GE Healthcare is doing with Nvidia's TensorRT software. The technology can help rapidly analyze test results, create personalized medical risk assessments for patients, and provide decision support for physicians.
Some biopharmaceutical companies use AI in their drug development process. In particular, AI can predict protein structures and analyze genetic sequences. Nvidia isn't just helping biotech companies on this front; it also invested $50 million in Recursion Pharmaceuticals, which uses AI for drug discovery.
AI can make medical technology devices more effective. That's what J&J hopes to do by using Nvidia's IGX edge computing platform and Holoscan edge AI platform to help develop new surgical devices.
One of the biggest complaints that U.S. healthcare professionals have is the amount of administrative work they must do. AI holds the potential to streamline a wide range of administrative tasks, including appointment scheduling, claims processing, and clinical documentation. This hasn't been a major area of focus for Nvidia so far, but it could present a big opportunity for the company.
Should you buy Nvidia stock because of its healthcare efforts?
Nvidia's ongoing expansion into the lucrative healthcare market could achieve tremendous success. However, I don't think these healthcare efforts by themselves justify buying the stock right now.
But what about the combination of Nvidia's healthcare initiatives and everything else the company is doing? Its overall growth prospects remain highly attractive. My chief concern with Nvidia is that its stock has such lofty expectations baked in that any hint of less-than-spectacular results could cause shares to fall hard.
Still, I think any pullback would present a great buying opportunity for this high-flying stock. And that's my view regardless of whether Nvidia conquers the healthcare market.
Major driver of the AI trade takes a breather. But Nvidia’s business is still full steam ahead
https://www.cnbc.com/2024/04/05/major-driver-of-ai-trade-takes-a-breather-but-nvidias-business-is-still-hot.html
Elon Musk
@elonmusk
Tesla Robotaxi unveil on 8/8
4:49 PM · Apr 5, 2024
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3.1M
Views
The second half of the year will be unreal, probably see $1k, not kidding
Robotaxi
FSD
Optimus
I'm the contrarian and am calling a bottom right around here
Contrarian indicator
$897 in pre
Tesla is making a profit, the others don't or are lagging far behind in margins, most negative. FSD is not fully appriciated. My Tesla takes me everywhere with no interventions. I assume most have not even tried FSD but when they do.......I also expect others will license FSD as there's nothing competing with it. Let's see. Think second half could go 200%
However bad the delivery numbers look i’m certain they would have been worse with Ross on the board
Elon:
He’s such an idiot that he can’t even tell he’s an idiot.
BYD sales dropped by 42% from last quarter. This was a tough quarter for everyone.
Revenue: Achieved a record $58.8 million in 2023, with Q4 sales hitting $22.2 million, significantly surpassing the estimated $27.835 million. Net Income: Reported a net loss of $39.7 million or $(0.45) per share in 2023, compared to a net loss of $27.0 million or $(0.40) per share in 2022.
April fool's
When you drove the latest version you had any issues?
Elon Musk
@elonmusk
Most people still have no idea how crushingly good Tesla FSD will get.
It will be superhuman to such a degree that it will seem strange in the future that humans drove cars, even while exhausted and drunk!
Cars will take you where you want automatically, just like getting in an elevator and pressing a button, something that also used to be manual.