We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NVIDIA's (NVDA) Expanding AI Portfolio Makes It a Strong Buy
Read MoreHide Full Article
NVIDIA Corporation (NVDA - Free Report) is riding on a strong and innovative portfolio with the growing adoption of its graphic processing units (GPUs). The stock has witnessed a remarkable run so far this year, returning a staggering 121.4% year to date (YTD). NVDA stock has outperformed the Zacks Semiconductor – General industry’s growth of 85.5% during the same time frame.
NVIDIA’s sustained focus on artificial intelligence (AI) has propelled it to the forefront of the AI chip market. Its GPUs are the backbone of AI training and inference workloads, making them indispensable in various sectors, including healthcare, automotive, finance and more.
The latest product launches at Computex 2024 have once again underscored its dominance in the AI space.
At Computex 2024, NVIDIA unveiled several cutting-edge products and technologies that highlight its robust and expanding portfolio. One of the standout announcements was the introduction of RTX AI laptops from ASUS and MSI, featuring up to GeForce RTX 4070 GPUs and power-efficient systems-on-a-chip with Microsoft’s (MSFT - Free Report) Windows 11 AI PC capabilities.
These laptops are designed to deliver superior performance and efficiency, catering to the increasing demand for AI-powered computing. With AI becoming integral to many applications, from gaming to professional work, NVIDIA’s AI laptops are well-positioned to capture a significant market share.
NVIDIA also introduced Project G-Assist, an RTX-powered AI assistant technology that provides context-aware help for PC games and applications. This technology leverages generative AI to offer gaming strategies, analyze multiplayer replays and assist with complex creative workflows. By enhancing the gaming experience and improving productivity, Project G-Assist showcases NVIDIA’s ability to integrate AI seamlessly into everyday tasks, further boosting its appeal among gamers and professionals alike.
Another major highlight was the debut of NVIDIA NIM inference microservices for the ACE digital human platform. This technology enables developers to reduce deployment times significantly, delivering high-quality inference running locally on devices for natural language understanding, speech synthesis and facial animation. By making these capabilities more accessible and efficient, NVIDIA is setting the standard for digital human technology and expanding its reach into new and existing markets.
Additionally, NVIDIA revealed its latest collaboration with Microsoft. The partnership involves integrating GPU-accelerated small language models into Windows applications, enabling advanced AI capabilities like content summarization and task automation.
NVIDIA’s announcements at Computex 2024 are not just incremental improvements, but they represent significant advancements in technology that have far-reaching implications. The integration of AI into more aspects of computing, from gaming to professional applications, positions NVIDIA as a leader in the AI revolution. This sustained focus on AI aligns with global trends and ensures that NVIDIA remains at the forefront of technological innovation.
GenAI Investments Aid NVIDIA’s Prospects
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $967.6 billion by 2032, according to a new report by Fortune Business Insights. The market is expected to expand at a CAGR of 39.6% from 2024 to 2032.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. Its GPUs are already being applied in AI models which is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
Considering surging AI investments, NVDA expects its second-quarter fiscal 2025 revenues to reach $28 billion from $13.51 billion in the year-ago quarter.
Final Thoughts
NVIDIA’s robust product lineup, market leadership in AI and continuous innovation make it a compelling investment opportunity.
It remains a market darling, and razor-sharp investors should encash on NVDA’s likely long-term upward movement. The long-term expected earnings growth rate is currently pegged at 36.7%, significantly higher than the Zacks Semiconductor – General industry’s 18.6%.
NVIDIA is also a cash-rich company, making it immune to market upheavals. The company’s cash and cash equivalents were $31.44 billion as of Apr 28, 2024, up from $25.98 billion on Jan 28, 2024.
Nonetheless, NVIDIA trades at a one-year forward P/S of 21.54X, a massive premium to the Semiconductor – General industry’s forward P/S multiple of 15.55X. Therefore, many would argue that the stock is a risky bet. However, we beg to differ due to its consistent financial performance and strong growth opportunities in various untapped markets like automotive, healthcare and manufacturing over the long term.
NVIDIA sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A at present, which is a favorable combination offering solid investment opportunity as per Zacks’ proprietary methodology. NVDA’s Momentum Score of B makes it an attractive pick for investors.
The consensus mark for Paylocity’s fiscal 2024 earnings has moved north 23 cents to $6.30 per share over the past 30 days, which indicates a 22.3% increase from the fiscal 2023 level. The PCTY stock has plunged 13.8% in the YTD period.
The Zacks Consensus Estimate for Datadog’s 2024 earnings has moved north 12 cents to $1.54 per share in the past 30 days, which calls for an increase of 16.7% on a year-over-year basis. DDOG’s shares have dropped 9.3% YTD.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NVIDIA's (NVDA) Expanding AI Portfolio Makes It a Strong Buy
NVIDIA Corporation (NVDA - Free Report) is riding on a strong and innovative portfolio with the growing adoption of its graphic processing units (GPUs). The stock has witnessed a remarkable run so far this year, returning a staggering 121.4% year to date (YTD). NVDA stock has outperformed the Zacks Semiconductor – General industry’s growth of 85.5% during the same time frame.
NVIDIA’s sustained focus on artificial intelligence (AI) has propelled it to the forefront of the AI chip market. Its GPUs are the backbone of AI training and inference workloads, making them indispensable in various sectors, including healthcare, automotive, finance and more.
The latest product launches at Computex 2024 have once again underscored its dominance in the AI space.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Key Announcements at Computex 2024
At Computex 2024, NVIDIA unveiled several cutting-edge products and technologies that highlight its robust and expanding portfolio. One of the standout announcements was the introduction of RTX AI laptops from ASUS and MSI, featuring up to GeForce RTX 4070 GPUs and power-efficient systems-on-a-chip with Microsoft’s (MSFT - Free Report) Windows 11 AI PC capabilities.
These laptops are designed to deliver superior performance and efficiency, catering to the increasing demand for AI-powered computing. With AI becoming integral to many applications, from gaming to professional work, NVIDIA’s AI laptops are well-positioned to capture a significant market share.
NVIDIA also introduced Project G-Assist, an RTX-powered AI assistant technology that provides context-aware help for PC games and applications. This technology leverages generative AI to offer gaming strategies, analyze multiplayer replays and assist with complex creative workflows. By enhancing the gaming experience and improving productivity, Project G-Assist showcases NVIDIA’s ability to integrate AI seamlessly into everyday tasks, further boosting its appeal among gamers and professionals alike.
Another major highlight was the debut of NVIDIA NIM inference microservices for the ACE digital human platform. This technology enables developers to reduce deployment times significantly, delivering high-quality inference running locally on devices for natural language understanding, speech synthesis and facial animation. By making these capabilities more accessible and efficient, NVIDIA is setting the standard for digital human technology and expanding its reach into new and existing markets.
Additionally, NVIDIA revealed its latest collaboration with Microsoft. The partnership involves integrating GPU-accelerated small language models into Windows applications, enabling advanced AI capabilities like content summarization and task automation.
NVIDIA’s announcements at Computex 2024 are not just incremental improvements, but they represent significant advancements in technology that have far-reaching implications. The integration of AI into more aspects of computing, from gaming to professional applications, positions NVIDIA as a leader in the AI revolution. This sustained focus on AI aligns with global trends and ensures that NVIDIA remains at the forefront of technological innovation.
GenAI Investments Aid NVIDIA’s Prospects
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $967.6 billion by 2032, according to a new report by Fortune Business Insights. The market is expected to expand at a CAGR of 39.6% from 2024 to 2032.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. Its GPUs are already being applied in AI models which is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
Considering surging AI investments, NVDA expects its second-quarter fiscal 2025 revenues to reach $28 billion from $13.51 billion in the year-ago quarter.
Final Thoughts
NVIDIA’s robust product lineup, market leadership in AI and continuous innovation make it a compelling investment opportunity.
It remains a market darling, and razor-sharp investors should encash on NVDA’s likely long-term upward movement. The long-term expected earnings growth rate is currently pegged at 36.7%, significantly higher than the Zacks Semiconductor – General industry’s 18.6%.
NVIDIA is also a cash-rich company, making it immune to market upheavals. The company’s cash and cash equivalents were $31.44 billion as of Apr 28, 2024, up from $25.98 billion on Jan 28, 2024.
Nonetheless, NVIDIA trades at a one-year forward P/S of 21.54X, a massive premium to the Semiconductor – General industry’s forward P/S multiple of 15.55X. Therefore, many would argue that the stock is a risky bet. However, we beg to differ due to its consistent financial performance and strong growth opportunities in various untapped markets like automotive, healthcare and manufacturing over the long term.
NVIDIA sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A at present, which is a favorable combination offering solid investment opportunity as per Zacks’ proprietary methodology. NVDA’s Momentum Score of B makes it an attractive pick for investors.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology sector are Paylocity Holding (PCTY - Free Report) and Datadog (DDOG - Free Report) , each sporting a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The consensus mark for Paylocity’s fiscal 2024 earnings has moved north 23 cents to $6.30 per share over the past 30 days, which indicates a 22.3% increase from the fiscal 2023 level. The PCTY stock has plunged 13.8% in the YTD period.
The Zacks Consensus Estimate for Datadog’s 2024 earnings has moved north 12 cents to $1.54 per share in the past 30 days, which calls for an increase of 16.7% on a year-over-year basis. DDOG’s shares have dropped 9.3% YTD.