The King Of All Chip Stocks Is Still A Great Buy

We want to tell you about this little-known company that you might want to invest in. Yes, Nvidia (NASDAQ: NVDA). Again. Nvidia, the semiconductor giant, has been the stock market's darling for the past 18 months, with its shares skyrocketing over 200% in a year. This surge is attributed to its supremacy in AI chip manufacturing and consistently impressive quarterly results. For FY 2024, Nvidia’s revenue shot up 126% to $60.9 billion. The company’s GAAP earnings per diluted share were up an eye-popping 586% from the prior year to $11.93. Its non-GAAP EPS was up 288% to $12.96.

Who Is Nvidia?

Founded in 1993, Nvidia’s first claim to fame was its innovation in 3D graphics for the multimedia and gaming markets. In 1999, the company introduced the graphics processing unit (GPU), which was a game-changer for fast computing. In 2022, they introduced the NVIDIA Omniverse™ platform. Over the last decade, Nvidia has achieved a million-fold increase in AI performance while reducing computing costs.

Top analyst C.J. Muse from Cantor is beyond bullish, suggesting this is just the beginning. He sees future advancements in “logic, multi-modal functionality, and cultural adaptations” boosting demand. Jensen Huang, Nvidia's CEO, envisions another million-fold performance improvement in the coming decade, potentially leading to "AI ubiquity." If this exponential growth occurs, according to Muse, we could see Nvidia's market impact expand from a percentage of data center expenditure to a slice of global IT spending and, eventually, a portion of GDP.

What The Analysts Are Saying

Now that Nvidia’s price tag is a bit more ‘in reach’ for the average investor, it’s time to take another look. Muse anticipates Nvidia's stock will continue to climb, raising his price target to $175 from an earlier price of $140, projecting a 41% increase over the next year. The broader analyst community shares this optimism, with 38 out of 41 analysts rating Nvidia a "Buy." The average price target is $135.09. NVDA last closed at $123.54.

Neither Julie Stoller nor Stocks.News have positions in this company.