Key Points
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Nvidia (NASDAQ: NVDA) shares currently priced at $192 have seen a 1,200% increase since January 2023, driven by the rise of AI technologies such as ChatGPT. Analyst predictions vary widely: Mark Lipacis of Evercore projects a target price of $352 per share (83% upside), while Jay Goldberg of Seaport Research forecasts a decline to $140 per share (27% downside).
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Wall Street anticipates Nvidia’s earnings to grow at 37% annually over the next three years, leading to a current valuation of 47 times earnings, which is considered reasonable due to likely underestimations of AI spending.
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Despite competitive threats from custom AI chips like Google’s TPUs, Nvidia maintains an 85% market share in the AI accelerator market, leveraging a full-stack strategy that integrates hardware and software to optimize performance and efficiency in data centers.
