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There is no way around this. Nvidia (NVDA -0.49%) He’s been a rock star on Wall Street since the artificial intelligence (AI) revolution began just a year ago. In fact, since the beginning of 2023, the semiconductor company’s stock has soared nearly 441%.
One Wall Street analyst believes there’s more to come.
Profit from the AI boom
Rosenblatt analyst Hans Mosesmann, who calls himself the “most bullish analyst on NVIDIA,” maintained a buy rating on the stock and raised his price target to $1,400. This means investors could potentially earn 78% on the stock’s stock price as of Friday’s market close.
The analyst cited Nvidia’s 2024 fourth-quarter financial results, announced just last week, as a reason for his bullish view. The semiconductor specialist has delivered three consecutive quarters of triple-digit year-over-year growth, and its guidance hinted at more of the same growth.
Analysts note that NVIDIA remains a sell-off. [fiscal year]Additionally, Mosesman suggests that more may come, saying, “We’re in the very early stages of what we call the mother of all cycles.”
What does the future hold for Nvidia?
Most market commentators agree with analysts that we are still in the early stages when it comes to generative AI adoption. If so, which I believe is the case, NVIDIA has two advantages that could drive the stock price higher.
First, NVIDIA has a virtual monopoly on graphics processing units (GPUs) used in the data center market, where most AI processing takes place, with an estimated market share of 95%. Second, Nvidia made a name for itself as the go-to company for machine learning (an early field of AI), with 95% market share. that market.
Let’s be clear: the days of easy triple-digit comps will soon be in the rearview mirror, but AI is still in its infancy. And with a price-to-earnings ratio (PEG ratio) of less than 1 (the standard for a cheap stock), NVIDIA remains significantly undervalued relative to opportunity.
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