Every now and then, a company comes along that is so dominant and is growing so quickly that it feels like the only stock anyone cares about. I’m referring, of course, to Nvidia Corp., the chip giant powering artificial intelligence. Its stock has surged 4,000% over the past five years, making it one of the three most valuable businesses in the world alongside heavyweights Microsoft Corp. and Apple Inc.
Nvidia deserves every bit of the attention. Its market share for AI chips is around 90%. Its profit margin is 57% on $80 billion in revenue, by far the highest revenue among companies with comparable profitability in the S&P 500 Index. It has also grown sales by 64% a year over the past five years, the highest growth rate among S&P 500 companies.
FAQs
NVDA Stock 12 Month Forecast
Based on 42 Wall Street analysts offering 12 month price targets for Nvidia in the last 3 months. The average price target is $153.24 with a high forecast of $200.00 and a low forecast of $90.00. The average price target represents a 28.62% change from the last price of $119.14.
Why is Nvidia price going down? ›
In early August, the stock dived amid a report that Nvidia will delay its next-generation AI chip by at least three months due to a design flaw. Nvidia's chart also shows that the stock underperformed the S&P 500 during the sell-off.
What is the Nvidia statement on AI? ›
Huang: AI Will 'Very Likely' Change Everyone's Jobs
When Huang was asked to what extent he thinks AI will augment tasks or even replace tasks done by humans, the Nvidia CEO said he thinks it's “very likely” that AI will change everyone's job, including his own.
Why is Nvidia undervalued? ›
Any PEG ratio of below 1 is considered an attractive valuation. The math is simple using the PEG ratio. Since Nvidia's P/E ratio is nearly 74, the company would need to generate annual EPS growth of roughly 74% over the next five years to be undervalued today.
Is Nvidia a buy sell or hold? ›
So, there isn't exactly a strong reason to sell Nvidia right now. Moreover, the reason for investors to hold off from buying more Nvidia shares doesn't hold much water either. Investors would do well to buy Nvidia following its latest drop, as the bull case appears to be solid enough to warrant an investment.
Is Nvidia a long-term investment? ›
However, at 21% below its all-time high in June, Nvidia's shares remain a compelling option for long-term-minded investors. Despite recent declines, Nvidia hasn't given any indication that its earnings won't continue soaring, thanks to its lead in the chip market.
Who is the supplier of Nvidia AI? ›
SK Hynix leads the HBM market and is the main supplier of those chips to Nvidia, in competition with Samsung Electronics (005930. KS) , opens new tab and the United States' Micron (MU. O) , opens new tab. Nvidia commands some 80% of the artificial intelligence chip market.
Who is Nvidia competitor AI? ›
Outside of Nvidia, some of the more obvious competitors in the chip realm include AMD and Intel. AMD's MI300X accelerator and the Gaudi 3 from Intel are each company's response to Nvidia's GPU roster at the moment.
How much does Nvidia AI chip cost? ›
NVIDIA CEO Jensen Huang, right after GTC 2024, confirmed that the company's cutting-edge AI chip, Blackwell B200, might cost anywhere between $30,000 and $40,000 per unit.
Is Nvidia overpriced now? ›
While some analysts argue that Nvidia's valuation is expensive, others make the case that the company still has a long runway to grow, which justifies its premium valuation. I am neutral on the outlook for Nvidia stock, as I believe the current valuation reflects the economic reality facing the company.
According to supply chain data estimates from Bloomberg, Arcuri is spot on with Microsoft being Nvidia's largest customer. Bloomberg data estimates that Microsoft makes up 15% of Nvidia's revenue, followed by Meta Platforms at 13% of revenue, Amazon at 6% of revenue, and Alphabet at about 6% of revenue.
Is Nvidia in debt? ›
What Is NVIDIA's Net Debt? You can click the graphic below for the historical numbers, but it shows that NVIDIA had US$9.71b of debt in January 2024, down from US$11.0b, one year before.
What is the 5 year forecast for Nvidia? ›
Assuming Nvidia does hit $184.5 billion in revenue in fiscal 2027, its top line would have increased at a compound annual rate of 45%. If the semiconductor giant's growth tapers off in the two that follow years to, let's say 25% a year, its revenue could reach $288 billion after five years.
What is the stock price forecast for Nvidia in 2025? ›
The stock's Street-high target price is $200, which is over 67% higher. Looking at the current scenario, I believe Nvidia could still deliver strong double-digit returns by the end of 2025, as the AI investment spree is showing no signs of tapering off.
What will Nvidia stock be worth in 2026? ›
Long-term forecast for 2026-2030: projected steady growth, with expectations of reaching $2,088 by the end of 2026 and continuing to climb in subsequent years. Nvidia is seen as a critical player in the stock market, leaning toward a bullish perspective for its future stock price movements.
What is the price target for Nvidia in 2024? ›
Nvidia stock prediction for October 2024. The forecast for beginning 124 dollars. Maximum price 146, minimum 106. Averaged Nvidia stock price for the month 126.
