Nvidia is known for its graphics cards, but the company also produces microchips for autonomous driving cars and AI applications. The company’s CEO, Ginseng Huang, is positioning Nvidia to be at the forefront of bringing AI to every industry.
NVDA is the best-performing AI stock over the past year. Earnings per share, or EPS, had a big leap higher in 2023, and analysts project strong EPS growth going forward. It has the highest forecasted 5-year EPS growth on the list.
The company has an “A” financial health rating from Morningstar, and it is expected to grow EPS by 21.9% next year.
The current price-earnings, or P/E, ratio is high at 75.9. However, if earnings growth continues as expected, the high valuation is fair. The increasing EPS figures are being factored in by investors.
As an added bonus, NVDA buys back shares. That helps bolster stock performance over the long run. It has a buyback yield of 0.7%. It is also one of the best-performing stocks over the last decade, with an average yearly return of 68.8%.
Microsoft. Microsoft, a leader in AI technology, leverages AI-powered tools and machine-learning models to enhance productivity and efficiency across industries.
Microsoft. Microsoft, a leader in AI technology, leverages AI-powered tools and machine-learning models to enhance productivity and efficiency across industries.
Vanguard Information Technology ETF (VGT) is one of the best all-purpose AI ETFs. The fund manages net assets of $73.5 billion and has an efficient expense ratio of 0.10%.
From a stock price perspective, Nvidia is knocking it out of the park. Shares of Nvidia have run up more than 200% in the past year positioning the AI chip giant as the third largest company in the U.S. with a $2.97 trillion market cap, trailing only Apple's $3.17 trillion and Microsoft's $3.21 trillion market values.
Because it sells the building blocks for AI infrastructure, Nvidia became the first major company to see a significant boost from AI. Revenue has surged through 2023 and early 2024, and the stock has soared as well. Its chips are popular for demanding workloads that applications like large language models require.
By 2025, the artificial intelligence business is anticipated to be worth $190 billion, with $57 billion spent on AI systems globally by 2021. AI is used in some way by almost 35% of enterprises. Almost 85% of firms regard AI to be a strategic priority.
The most recent statistics predict it will be worth US$ 184.00bn in 2024. However, that is a small fry compared to forecasts for 2030. The market is expected to grow at almost 29% and will be worth a staggering US$826 billion by the end of the decade.
Introduction: My name is Saturnina Altenwerth DVM, I am a witty, perfect, combative, beautiful, determined, fancy, determined person who loves writing and wants to share my knowledge and understanding with you.
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