Wednesday, May 08, 2024 8:08:51 AM
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.
Recent NVDA News
- U.S. Stocks Close Higher; Nasdaq Outperforms • IH Market News • 07/01/2024 09:10:17 PM
- Interactive Brokers Loses $48 Million on NYSE, Amazon Achieves Historic Market Value, and More News • IH Market News • 06/27/2024 11:13:41 AM
- Doordash and Deliveroo Terminate Talks; Universal Announces UK Theme Park Plan, and More News • IH Market News • 06/26/2024 11:08:35 AM
- Dow Dips, Nasdaq Gains, Oil Prices Rise • IH Market News • 06/26/2024 11:00:03 AM
- U.S. Stocks Close On Mixed Note Again; Technology Stocks Rebound • IH Market News • 06/25/2024 10:00:00 PM
- U.S. Index Futures Mixed Following Tech Sell-Off, WTI and Brent Crude Dip Slightly • IH Market News • 06/25/2024 10:37:15 AM
- SolarEdge Stock Falls 13%, Wegovy Approved in China, Grail Nasdaq Debut, Apple Rejects Meta Chatbot • IH Market News • 06/25/2024 10:36:11 AM
- U.S. Stocks End Mixed After Cautious Session • IH Market News • 06/24/2024 09:01:19 PM
- DIGIASIA Corp Advances into AI Solutions for Financial Services, Telecom, and Government Sectors with NVIDIA GPU Allocation • GlobeNewswire Inc. • 06/24/2024 08:05:00 PM
- Futures Pointing To Roughly Flat Open On Wall Street • IH Market News • 06/24/2024 01:08:46 PM
- U.S. Index Futures Show Mixed Results, Oil Prices Edge Lower • IH Market News • 06/24/2024 11:01:54 AM
- UPS Divests Coyote Logistics in $1.025 Billion Deal with RXO, Under Armour Agrees to $434 million Settlement, and More News • IH Market News • 06/24/2024 11:00:20 AM
- U.S. Stocks Close Mixed Following Lackluster Session • IH Market News • 06/21/2024 08:38:41 PM
- Honeywell Acquires CAES Systems for $1.9 Billion, Sarepta Therapeutics Surges 34%, Gilead Continues Gains • IH Market News • 06/21/2024 12:00:38 PM
- U.S. Futures Decline Ahead of Triple Witching, Oil Prices Edge Lower • IH Market News • 06/21/2024 12:00:27 PM
- Dow Closes Firmly Positive But Nasdaq, S&P 500 Give Back Ground • IH Market News • 06/20/2024 08:30:11 PM
- Nvidia May Lead Early Upward Move On Wall Street • IH Market News • 06/20/2024 01:10:49 PM
- U.S. Index Futures Surge; Oil Prices Increase • IH Market News • 06/20/2024 10:56:57 AM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- Nvidia Overtakes Microsoft To Become World’s Most Valuable Company • IH Market News • 06/19/2024 09:32:08 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/18/2024 09:16:15 PM
- Hewlett Packard Enterprise and NVIDIA Announce ‘NVIDIA AI Computing by HPE’ to Accelerate Generative AI Industrial Revolution • Business Wire • 06/18/2024 04:30:00 PM
- Fisker Files for Bankruptcy, Chegg Stocks Rise on 23% Workforce Reduction, and More • IH Market News • 06/18/2024 11:02:13 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/17/2024 09:06:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 09:00:47 PM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM