NVIDIA Corporation NVDA has embarked on a rocket-like trajectory, soaring an impressive 82.5% in the opening quarter of 2024. This sharp ascent has catapulted the company into a league of technological trailblazers, igniting a frenzy of enthusiasm among investors and onlookers alike. The pinnacle was scaled not too long ago, in March 2024, when NVIDIA breached the elusive $2 trillion market capitalization mark, cementing its status as a paradigm of innovation and progress.
This meteoric rise is a testament to the unwavering faith of investors in NVIDIA’s strategic vision, solid financial performance, and pivotal role in shaping revolutionary technologies such as artificial intelligence (AI), gaming, and data center solutions.
The crucial question that looms large now is — can NVIDIA sustain this dizzying momentum in the days to come?
Quest for Continuity: NVIDIA’s Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
GenAi Investments to Stoke NVDA’s Meteoric Rise
NVIDIA’s awe-inspiring stock performance owes much to the anticipation that the company will emerge as a foremost beneficiary of the burgeoning investments in generative AI. With the inherent promise of generative AI and NVIDIA’s leadership in the domain, the NVDA stock seems primed to perpetuate its soaring journey through 2024.
NVIDIA’s dominance in the AI chip market looms large. The monumental emergence of OpenAI’s ChatGPT and its adoption across various industries such as marketing, customer service, education, and healthcare underscores the pervasive utility of generative AI. The escalating imperative to modernize workflows across sectors is expected to fuel the adoption of generative AI applications. Projections indicate that the global generative AI market is poised to burgeon to $967.6 billion by 2032, marking a CAGR of 39.6% from 2024 to 2030.
However, the formidable demands of generative AI, which include substantial knowledge for content creation and massive computational prowess, necessitate enterprises eyeing generative AI-based solutions to revamp their existing network infrastructure.
Enter NVIDIA’s next-gen chips, armed with unparalleled computing might, positioning them as the prime choice for enterprises venturing into generative AI applications. NVIDIA’s GPUs have already found traction in AI models, expanding its reach into nascent markets like automotive, healthcare, and manufacturing.
The ongoing generative AI revolution is set to drive a seismic surge in demand for NVIDIA’s high-performance next-gen chips. Fueled by the escalating AI investments across the data center segment, NVIDIA projects its Q1 fiscal 2025 revenues to soar to $24 billion from $7.19 billion in the corresponding period the prior year.
Furthermore, NVIDIA presently flaunts a Zacks Rank #1 (Strong Buy) with a Growth Score of B. Our analysis indicates that stocks with a Growth Score of A or B, coupled with a Zacks Rank of 1 or 2 (Buy), present the most tantalizing investment prospects. Thus, NVIDIA emerges as a compelling investment avenue at present.
Exploring Alternatives: Other Robust Stocks to Consider
In addition to NVIDIA, some other notable stocks worth exploring in the expansive technology sphere include Meta Platforms META, Zscaler ZS, and Twilio TWLO.
Meta Platforms, currently adorned with a Zacks Rank #1 and a Growth Score of B, has seen a 13% upward revision in the Zacks Consensus Estimate for its 2024 earnings, now standing at $19.94 per share. This anticipates a whopping 91.6% year-over-year earnings upsurge, with a long-term estimated earnings growth rate of 19.5%.
Zscaler, sporting a Zacks Rank #2 and a Growth Score of A, has witnessed a 26 cents upward revision in the Zacks Consensus Estimate for its fiscal 2024 earnings, now pegged at $4.03 per share. This translates to a 52.5% year-over-year increase, with a long-term expected earnings growth rate of 28.1%.
Twilio boasts a Zacks Rank #2 and a Growth Score of A, with the consensus mark for Twilio’s 2024 earnings on an upwards trajectory, currently set at $2.70 per share. This signals a 10.2% increase from the previous year, with a long-term earnings growth expectation of 19.6%.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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The expressions and viewpoints articulated herein are solely those of the author and may not necessarily align with those of Nasdaq, Inc.
