Nvidia (NVDA) is in a Profit area Starting at 505.48 points.Nvidia shares moved higher on Monday after the chipmaker’s announcement Intel (International Trade Centre) and Clark (Cora) reported fourth-quarter results late last week.
IBD Market SmithChart tools show shares of the Big Seven rose after KeyBanc analysts raised their price target on the artificial intelligence leader to 740 from 650. TSMC’s(TSM) and ASML (ASML)’s quarterly report gave a boost to chip stocks.
In January alone, Nvidia’s stock price rose more than 20%. Is it worth buying now?
In early January, the leading artificial intelligence chip maker revealed new GeForce graphics processors for artificial intelligence-enabled laptops and PCs at CES, and said its autonomous driving systems are being used in electric vehicles. ideal car (LI) and other electric vehicle manufacturers have chosen Nvidia powered Thor For their fleet.
The artificial intelligence chip leader rose 239% in 2023 and hit an all-time high of 505.48 before the end of the year before peaking at a 505.48 buy point on January 8 on heavy volume.
The company is expected to release fiscal fourth-quarter results on February 21.
NVIDIA Stock: Q3 Earnings
Just before third-quarter earnings were released in November, the stock price broke a double bottom.
A week before announcing its results, Nvidia announced the launch of a new artificial intelligence computing platform and an advanced artificial intelligence computing platform at the SC23 supercomputing conference in Denver. Data Center Chip. This pushed the stock to a new all-time high.
Despite a stellar quarter, shares fell after the earnings release. The company said sales for the year ended Oct. 29 were $18.12 billion and profit per share was $4.02. Analysts polled by FactSet expected sales of $3.37 per share. $16.19 billion.
Compared with the same period last year, Nvidia financial report It soared 593%, and sales soared 206%. This is also the second consecutive quarter that the chip leader has achieved triple-digit growth in both metrics.
The demand for data centers is the main reason. Nvidia’s data center sales increased by 279% year-on-year to a record $14.51 billion. Data center sales also increased by 41% compared with the second quarter.
When Nvidia submitted its financial report, it expected sales in the fourth quarter ending in January to reach $20 billion, an increase of 231% over the previous year, ahead of analysts’ expectations of $17.96 billion.
Nvidia stock analysts currently expect earnings per share to grow 239% to $11.22 in fiscal 2024, which ends this month. Since then, Wall Street expects profit growth to slow sharply to 69% in fiscal 2025.
Artificial intelligence products drive growth
Nvidia has earned a reputation as a trailblazer. The company was an early pioneer in the field of graphics processors, which many believe greatly improved computer gaming. In addition to gaming, Nvidia chips are now used in industries including healthcare, automotive, and robotics.
In March of this year, generative artificial intelligence took a leap forward with OpenAI’s ChatGPT. Nvidia’s AI-enabled supercomputers pave the way for “an AI-powered iPhone moment,” the company said.
This helped Nvidia reverse its performance decline. The company has posted record revenue and profit growth in the last two quarters after three quarters of year-over-year sales declines and four quarters of shrinking earnings.
Nvidia’s top rating
Nvidia stock shows superior technical strength and has a top score of 99 Overall rating and EPS Rating.it is relative strength rating 98 also shows that it outperforms the vast majority of stocks in Investor’s Business Daily database.
Nvidia is also one of the top seven stocks leading the 2023 stock market rally.Other stocks are apple (AAPL), Microsoft (Microsoft Corporation), letter (Google), meta platform (Mehta), Tesla (Tesla) and Amazon (Amazon). Some of these tech giants are customers that rely on Nvidia’s advanced chips. it is also”2024 Haoqi”.
Current Nvidia Stock Number one The fabless semiconductor group ranks 16th among 197 industry groups in IBD. AI stocks frequently appear in IBD50IBD industry leaders, and technology leader Additionally, the stock is listed on IBD Ranking list.
In November, Nvidia’s stock price rose 15%, outperforming the Nasdaq Index’s 10.70% increase. But in December, the stock rose 6%, slightly ahead of the Nasdaq’s 5.5% gain that month.
Is Nvidia stock a buy?
this Accumulate/issue ratings Nvidia stock has a rating of A-. This indicates increased interest from institutional buyers over the past 13 weeks.
According to the report, total global AI chip revenue will grow from US$53.4 billion in 2023 to US$67.1 billion in 2024, an increase of 26%. recent reports Data from research firm Gartner.This number will double to $119 billion by 2027
Additionally, Bank of America analyst Vivek Arya reportedly set a price target on the artificial intelligence leader at $700. Bernstein analyst Stacy Rasgon also thinks the company’s valuation is attractive and has the same price target.
Nvidia stock is not a buy right now. The stock has extended out of a buy zone derived from the flat bottom entry of 505.48.
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