Nvidia Stock Soars: Analyzing the AI Giant's Market Performance and Future Prospects

Here's Why Nvidia Stock Jumped Today

Is Nvidia stock still a great buy? Recent coverage from one Wall Street analyst suggests the AI stock will keep soaring. Nvidia (NVDA 4.08%) stock posted significant gains in Monday's trading. The artificial intelligence (AI) leader's share price climbed 4.1% in the daily session, according to data from S&P Global Market Intelligence. Nvidia stock got a boost in today's trading as investors and analysts reassessed the impact of a potential delay for the first generation of the company's upcoming Blackwell processors. The company's share price likely also got a boost from news that the graphics processing unit (GPU) frontrunner had signed a new AI training deal with the state of California. Nvidia continues to rack up public sector wins Nvidia has been touting the importance of developing AI systems for countries. The company anticipates a dramatic ramping of public sector spending to develop artificial intelligence systems as countries aim to shore up national defense capabilities and overall sovereignty. The announcement of the new training partnership with California reflects a similar dynamic on a U.S.-state level. It wouldn't be surprising to see Nvidia announce additional AI training deals with other states in the near future. Is Nvidia stock on track for more big gains? UBS published a report on Nvidia today, maintaining a buy rating on the stock and a one-year price target of $150 per share. The artificial intelligence leader's stock has seen volatile trading recently as investors have weighed concerns about expectations that its first Blackwell processors will be delayed. With the company closing out today's daily session valued at roughly $109 per share, UBS' price target suggests near-term upside of roughly 38%. The first releases in the Blackwell line are expected to deliver a substantial leap forward in processing power and were expected to be a major performance driver for Nvidia this year. In general, the market has also shown some skittishness lately when it comes to valuations for megacap companies and leading AI players. But the bank thinks the tech stock is undervalued at current prices. UBS expects that a potential delay for the first Blackwell processors would still have them releasing by the end of January 2025, and the bank's analysts on the stock think overall demand for Nvidia's processors will remain very strong. While some analysts have projected that the AI leader's earnings will hit a near-term peak in 2025, UBS thinks profits will likely grow in 2026 as well.

Too Late to Buy Nvidia Stock After Its 600% Surge? Wall Street Has a Clear Answer. | The Motley Fool

Wall Street is overwhelmingly bullish on Nvidia despite its tremendous outperformance of late. Many experts see artificial intelligence (AI) as the investment opportunity of a lifetime. While the market is still nascent, chipmaker Nvidia (NVDA 4.08%) has already benefited substantially. Since January 2023, its trailing-12-month revenue has nearly tripled and shares have surged more than 600%. After those astonishing gains, some investors may worry it's too late to buy Nvidia stock, but Wall Street remains bullish. Sixty-one analysts follow the semiconductor company, according to CNN Business. Within that group, 92% (56 analysts) rate the stock a buy, and the remaining 8% (5 analysts) rate the stock a hold. Not a single analyst recommends selling right now. Even more compelling, Nvidia carries a median 12-month price target of $140 per share, which implies 35% upside from its current share price of $104. Suffice it to say Wall Street analysts generally do not believe it's too late to buy Nvidia. In fact, most view the current price as a reasonable entry point for investors. Nvidia graphics processing units (GPUs) are the industry standard in accelerating complex data center workloads like artificial intelligence (AI) applications. Analysts estimate its market share in AI processors between 70% and 95%, and Forrester Research recently wrote, "Nvidia sets the pace for AI infrastructure worldwide. Without Nvidia GPUs, modern AI wouldn't be possible." Few companies achieve that level of dominance, but Nvidia managed to threat that needle for three reasons. First, its GPUs are the fastest data center accelerators on the market. Second, it offers a robust ecosystem of supporting software tools that make its GPUs the go-to option for developers of accelerated computing applications. Third, Nvidia provides adjacent hardware to supplement its GPUs, such that the company effectively builds entire AI data centers. Nvidia consistently crushes the competition at the MLPerf benchmarks, tests that provide an unbiased evaluation of AI training and inference capabilities across hardware, software, and services. In March, Nvidia Hopper GPUs running its TensorRT-LLM software won every test of AI inference capabilities. In June, Hopper-based systems gave the best performance on every AI training workload. However, superior GPUs are only one piece of the puzzle. Nvidia also provides adjacent hardware like high-performance networking platforms and central processing units (CPUs) purpose-built for AI. CEO Jensen Huang recently said, "We literally build the entire data center and we can monitor everything, measure everything, optimize across everything." Beyond that, Nvidia CUDA is the most comprehensive ecosystem of supporting software for developers. CUDA includes tools for data preparation, model training, and deployment, which collectively streamline AI application development. That advantage will be hard to overcome because the CUDA ecosystem has been nearly two decades in the making, and Nvidia is still adding new tools at a steady clip today. "Year after year, Nvidia responded to the needs of software developers by pumping out specialized libraries of code, allowing a huge array of tasks to be performed on its GPUs at speeds that were impossible with conventional, general-purpose processors like those made by Intel and AMD," according to The Wall Street Journal. Grand View Research expects AI spending across hardware, software, and services to grow at 37% annually through 2030. That means Nvidia will have a strong tailwind at its back for many years to come, and the company is unlikely to lose its dominance in AI hardware any time soon. Toshiya Hari at Goldman Sachs recently wrote, "We believe Nvidia will remain the de fact industry standard for the foreseeable future given its competitive advantage that spans hardware and software capabilities, as well as the installed base and ecosystem it has built over multiple decades." That said, Nvidia has reportedly delayed shipments of its latest Blackwell GPUs by at least three months due to a design flaw. Blackwell chips deliver up to four times faster training and 30 times faster inference than the previous Hopper architecture. That delay could drive worse-than-expected results when the company reports earnings on Aug. 28, which could cause the stock to decline. Going forward, Wall Street expects Nvidia to grow non-GAAP earnings at 52% annually through fiscal 2026 (ends January 2026). That consensus estimate makes the current valuation of 57.7 times non-GAAP earnings look reasonable. Investors interested in purchasing shares of Nvidia should start with a small position today. If the stock falls after the upcoming earnings report, investors should consider using that opportunity to build a slightly larger position.

Nvidia Stock Sell-Off: Is It Time to Buy This Artificial Intelligence (AI) Stalwart? | The Motley Fool

Recent market headwinds are giving Nvidia investors a chance to turn back the clock and buy the shares at an attractive price. Amidst a market sell-off centered around big tech stocks, Nvidia (NVDA 4.08%) has had a rough month. Since it hit $135 per share in early July, the stock has sold off heavily and now sits at just shy of $100 per share. That's a near-30% decline from its high, indicating that Nvidia stock is in its own bear market. While this may cause some investors to panic, it may provide other investors a chance to buy the stock at a discount after missing the initial rise. So, is Nvidia stock a buy here? Or is this a reasonable price correction? The broader stock market sell-off is loosely attributed to a trading strategy that caused investors to borrow the Japanese Yen at low interest rates and then use that money to invest in some of the most dominant tech stocks in the U.S. market (like Nvidia). Now that Japan has signaled it is tightening interest rates, anyone doing this is selling their shares to return the money before higher interest rates kick in. Additionally, there is some fear that the U.S. Federal Reserve is asleep at the wheel and that it should be cutting interest rates. With unemployment rising steadily, many are concerned that we're actually in the beginning phases of a recession. These prevailing headwinds aren't doing Nvidia investors any favors, but they allow long-term investors to add more at a great price. These factors won't stop artificial intelligence (AI) proliferation, so it doesn't make sense to factor them into the long-term investment thesis. Because Nvidia is the top supplier of graphics processing units (GPUs) that provide the computing power necessary to train AI models, it has benefited greatly over the past year and a half as the AI arms race heats up. This isn't projected to slow anytime soon, and investors should focus on the AI infrastructure buildout. However, is the sell-off deep enough to warrant buying Nvidia stock? Valuing Nvidia stock is incredibly difficult because of its rapid growth and transformation. The best way to value it is by using the forward price-to-earnings (P/E) method, which uses analyst earnings projections over the next 12 months to assess the stock. While this method isn't perfect, it's the best way to assess Nvidia. Thanks to the sell-off, Nvidia trades for an expensive but much more reasonable 36 times forward earnings. While this only resets the valuation to late May levels (before its first-quarter earnings report), it's still not a bad price. Since its big tech peers like Amazon, Apple, and Microsoft aren't that much cheaper than Nvidia, trading respectively for 35, 31, and 30 times forward earnings. Plus, they don't have nearly the growth potential, it's starting to look like Nvidia may be worth buying. If you're going to buy Nvidia stock, it's probably best to do it before Aug. 28. That's when Nvidia reports Q2 earnings for its fiscal 2025, and Nvidia's stock has popped after almost every earnings report dating back to Q1 FY 2024. I'd be surprised if anything Nvidia says in that earnings report sends the stock lower, as all of the language from the cloud computing providers and any other company investing heavily in AI servers has stated they will only spend more over the next year. This is great news for Nvidia and is a fantastic reason to buy the stock now amid the market sell-off.

Nvidia Stock Has Jumped 10% in a Week. Is It Still a Buy? | The Motley Fool

Nvidia (NVDA 4.32%) stock may still be down from its June highs by about 20%, but it's gained meaningful ground in the last week. Monday's jump of as much as 6% brings its one-week return to about 10%. The stock's decline and the latest jump both come from investors watching the same thing. When word came out that production of Nvidia's newest artificial intelligence (AI) chips could be delayed, some investors feared that the high-flying advanced chip company's shares would tank. But investors are now paying attention to several Wall Street analysts who have soothed those concerns. Today, Bank of America's Vivek Arya released a report saying he thinks Nvidia's new Blackwell platform is "best suited for AI" and isn't sweating any short-term delivery delays. Nvidia's Blackwell platform is supposed to begin shipping later this year, but a manufacturing delay could push that back several months, according to reports. But Arya noted in his report that the ongoing semiconductor "upcycle" is only one year into what has historically lasted more than twice that long. He also believes that the adoption of AI chips is still in its early stages. That gives Nvidia a long runway to sell the Blackwell chip once deliveries begin. In the meantime, Nvidia will continue to sell its existing Hopper series chips fast through the end of this year, according to analysts at Jefferies. The bottom line for Nvidia investors is that its products are in very high demand. That includes its current lineup as well as next-generation AI chips and related software. Analysts including Bank of America's Arya believe that both businesses and governments have big plans for AI adoption. That helps explain Nvidia's recent rebound and today's bounce. The next catalyst could come when the company reports its quarterly financial update on Aug. 28.

Forget Nvidia: Billionaires and Insiders Aren't Buying, So Why Should You? | The Motley Fool

Nvidia CEO Jensen Huang has cashed out nearly $555 million worth of his own company's stock in less than two months. Approximately three decades ago, the advent of the internet began changing the growth trajectory for businesses around the globe. While numerous innovations, technologies, and trends have come along since then, none have come close to altering the growth arc quite like the internet... until now. The arrival of artificial intelligence (AI) is the first next-big-thing innovation in 30 years that represents a true leap forward in growth potential for businesses. With AI, software and systems are given autonomy to oversee tasks that humans would normally undertake. The machine learning capacity of AI-driven software and systems is what affords this technology a seemingly limitless ceiling, as well as utility in virtually all sectors and industries. Although we've witnessed dozens of companies benefit from the AI revolution, there's little denying that semiconductor colossus Nvidia (NVDA 4.08%) has been the face of the AI movement. When 2023 kicked off, Nvidia had a roughly $360 billion market cap. But shortly after completing a historic 10-for-1 forward split in June 2024, its valuation peaked at $3.46 trillion. It took less than 18 months for Nvidia to tack on more than $3 trillion in market value and skyrocket to the top of the pecking order on Wall Street. Though stock-split euphoria played some role in Nvidia's ascent, the bulk of the credit goes to the company's industry-leading AI hardware. Nvidia's H100 graphics processing unit (GPU) has become the go-to chip used for split-second decision-making in AI-accelerated data centers running generative AI solutions and training large language models. And when I say "go-to," it's not an exaggeration. The analysts at TechInsights estimate that Nvidia accounted for 98% of the 3.85 million GPUs shipped to data centers in 2023. Nvidia has also found itself in the enviable position of possessing exceptional pricing power. Demand for its GPUs is measurably outweighing supply. Nvidia has had no trouble logging orders, even with the selling price of its H100 GPU being two or three times higher than competing chips. These higher prices have lifted the company's adjusted gross margin by 13.7 percentage points to 78.4% over the previous five quarters (ended April 28, 2024). Furthermore, investors have taken solace in the fact that many of the world's most-influential tech companies are Nvidia's largest customers. Four members of the "Magnificent Seven" account for around 40% of Nvidia's net sales. But even though Nvidia's operating ramp has been textbook, not everyone on Wall Street -- or even in key leadership positions at Nvidia -- thinks the stock is headed higher. Every quarter, institutional investors and money managers with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission. A 13F allows investors to take an under-the-hood look at the portfolios of Wall Street's most-successful investors to see what they've been buying and selling. Based on 13Fs that cover trading activity for the first three months of the year, eight top-notch billionaires - or nine, if you include Jim Simons of Renaissance Technologies, who passed away in May - were sellers of Nvidia stock (total shares sold in parenthesis have been adjusted for the company's 10-for-1 stock split): While I'll get into the details of this billionaire money manager exodus in a moment, it's important to recognize that billionaires aren't the only prominent people dumping shares of Nvidia. In December 2020, Colette Kress, Nvidia's Chief Financial Officer, purchased 200 shares of her company's stock on the open market. In the subsequent three years and eight months since Kress added these shares, no Nvidia executives or board members have made an open-market purchase. Meanwhile, more than $1.6 billion worth of Nvidia stock has been sold by insiders over the trailing-12-month period, including CEO Jensen Huang. Since June 13, six days after his company's historic stock split took effect, Huang has netted $554,846,547 from selling shares of Nvidia. The all-important question is: Why are billionaire asset managers and company insiders selling shares of Nvidia stock at such an alarming pace? The answer, I suspect, boils down to a combination of history, competition, valuation, and some benign factors, such as profit-taking and tax purposes. Despite AI possessing the attributes of Wall Street's next game-changing technology, history has repeatedly shown that professional and everyday investors overestimate how quickly businesses and/or consumers will adopt and utilize new innovations. This is a roundabout way of saying that all new technologies, innovations, and trends need to time to mature. Wall Street is pricing AI stocks as if there'll be no bumps in the road, when history tells us that growing pains are part of the maturation process. If and when the artificial intelligence bubble bursts, Nvidia will take it on the chin. Growing competition for data center "real estate" is another front-and-center concern. With the first domino falling and Nvidia's next-generation Blackwell architecture delayed by at least three months because of a design flaw and supply issues, it opens the door for external competitors to grab share. Furthermore, the aforementioned four Magnificent Seven members that account for around 40% of Nvidia's net sales are all internally designing AI-GPUs of their own. Even if these AI-GPUs are used in a complementary fashion to Nvidia's H100 chips, it means less physical space in high-compute data centers for Nvidia's hardware. Valuation is another clear worry. Although Nvidia's forward price-to-earnings ratio still makes sense, its trailing-12-month price to sales ratio peaked in June at a nearly identical level to Wall Street's leading businesses prior to the dot-com bubble bursting. History may not repeat on Wall Street, but it certainly has a tendency to rhyme. Last but not least, we might be witnessing some simple profit-taking by prominent billionaire investors, and some tax-related selling by company insiders. Awarded options can sometimes account for the lion's share of compensation that executives receive, which means selling stock to cover the eventual tax bill. Not all insider selling is necessarily bad news. Nevertheless, with billionaires running for the exit for two consecutive quarters and insiders unwilling to buy shares on the open market since late 2020, there are ample reasons for investors to keep their distance from Nvidia.

Nvidia Stock Jumps as Analysts Call It a 'Top Pick'

Nvidia (NVDA) shares rose Monday as Bank of America analysts called the stock a top pick and UBS analysts said a reported delay in Nvidia's Blackwell artificial intelligence (AI) chip may be less significant than initially thought. Shares of Nvidia were recently up more than 4% in afternoon trading. The stock is up about 120% this year, though off highs seen earlier this summer. UBS analysts said they expect initial Blackwell shipments to be delayed four to six weeks, based on discussions with Nvidia customers, compared to a three-month delay that was earlier reported. The delay will likely be "invisible to most, if not all, end customers," they said. The analysts said they remained bullish on the stock, citing rising AI spending and enterprise demand growth Nvidia. They maintained a "buy" rating and price target of $150. The comments came as Bank of America analysts called the stock a top pick Monday, referencing the AI chipmaker's exposure to the data-center market and strength with cloud-computing giants set to raise spending on infrastructure.

What's Going On With Nvidia Stock On Monday? - NVIDIA (NASDAQ:NVDA)

Analyst highlights Nvidia's appeal after selloff, trading at 30x forward earnings. Nvidia Corp NVDA stock is trading higher on Monday. Ken Mahoney, president and CEO of Mahoney Asset Management, told Bloomberg that Nvidia's valuation has dropped to around 30 times forward earnings after the recent selloff, which could make the stock more appealing to long-term investors. The analyst touted that key artificial intelligence beneficiary stock has been up 152% in the last 12 months despite losing ~15% in the previous 30 days. Nvidia's success reflects its success in building a "walled garden" of developers who build AI systems and other software with its chips, the Wall Street Journal reports. This ecosystem, centered around Nvidia's software platform CUDA, has made it nearly impossible for competitors to gain significant ground in the AI market. Nvidia will likely have more leverage than its rivals as it continues to concentrate on its coding adeptness. CUDA, launched in 2007, allows Nvidia's specialized chips, GPUs, to run non-graphics software, including AI applications. Jensen Huang, Nvidia's CEO, describes this approach as "full-stack computing," where the company provides the chips and the software necessary to build AI systems. This strategy has solidified Nvidia's position as the dominant player in the AI chip market, with an estimated 90% market share expected to continue for the next few years. The AI chip market is projected to reach $400 billion annually by 2027. Investors can gain exposure to Nvidia through VanEck Semiconductor ETF SMH and Schwab U.S. Large-Cap Growth ETF SCHG. Price Action: NVDA shares traded higher by 5.30% at $110.24 at the last check on Monday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Nvidia Blog Market News and Data brought to you by Benzinga APIs

Nvidia's stock rises after UBS keeps Buy rating amid Blackwell delay

Nvidia's (NASDAQ:NVDA) stock rose about 4% on Monday after UBS retained its Buy rating on the shares, amid a delay in the availability of the company's Blackwell graphics processing units, or GPUs. The firm has a $150 price target on Nvidia's shares. Analysts led by Timothy Arcuri noted that after a series of customer discussions and more supply chain work, they were making slight adjustments to their 2025 EPS model to $4.87 from $4.95. They said that -- initial Blackwell customer volume shipments are delayed maybe four to six weeks at most (putting them at the very end of January 2025); and this delay looks likely to be largely filled in by many customers taking more H200 chips due to very short lead times. In addition, the analysts noted that lead customers should have first Blackwell instances stood up in April 2025 timeframe; and AI labs are still upsizing and lengthening their instance commitments and enterprises are rapidly growing as a proportion of the demand mix -- both bullish indicators. Arcuri and the team noted that Blackwell has started production at Taiwan Semiconductor Manufacturing (TSM) but there are some initial yield challenges due to the added complexity linked with CoWoS-L (local silicon bridge) for B100/B200 - essentially a larger interposer/package than CoWoS-S, which is being used for H100/H200, and this is producing less initial volume than planned. CoWoS stands for Chip on Wafer on Substrate. To maximize the available CoWoS-L capacity, Nvidia is replacing B100 with B200A which is using CoWoS-S, thereby freeing up scarce CoWoS-L capacity for B200/GB200 - this is higher value for Nvidia and also better matches customer demand mix as the vast majority of customers want rack-scale GB200 but most (other than two) are not fully ready with their liquid cooling infrastructure and the new B200A is allowing the company to offer a new 64 rack option (GB200A-NVL64) that is air cooled, according to the analysts. The analysts added that some investors have wondered if there is a flaw in the Blackwell design at the chip level, the analysts said, they push back on this as chipset level simulation has been verified multiple times with feedback from the supply chain indicating there has been no "fine tuning" of design tools. There is sufficient headroom and short enough lead time in H100/H200 supply for Nvidia to largely backfill lower initial Blackwell volumes with H200 units (and the supply chain is seeing upward revisions consistent with some backfill, as per the analysts. Arcuri and his team said, based on customer discussions, they had long suggested initial Blackwell shipments were not going to start until mid-December, so this push-back of four to six weeks should be largely invisible to most, if not all, end customers. The analysts added that they had highlighted in the past the evolving theme around air/liquid cooling and it remains a key issue that could shape the revenue mix for both Nvidia and AMD (AMD) (for MI350) in 2025. At a high level, these issues help to highlight the challenges that Nvidia (and AMD) face with an annual product cadence, especially with these rack scale systems. However, the analysts noted that AMD has already gone to chiplet and was a pioneer of CoWoS with TSM, and Nvidia, according to them, has to go full chiplet for Rubin to reuse some of the IO die -- this will be a challenge to see in 2026.