Tag: NVIDIA Corporation (NVDA)

AI Geopolitics: Why NVIDIA (NVDA) Could Lead the Next Tech Boom

Posted on by The INO.com Team

Artificial Intelligence (AI) is no longer just an academic pursuit or a niche industry. It has become a cornerstone of global economic strategies and a catalyst for innovation across virtually every sector. Governments and corporations alike are investing heavily in AI to secure strategic advantages, be it through enhanced national security, economic competitiveness, or industrial transformation. In this rapidly evolving landscape, NVIDIA Corporation (NVDA) has emerged as a key player.

With its roots in pioneering GPU technologies, NVIDIA has expanded into a broader role, providing the infrastructure that powers AI development globally. The company's financial performance underscores its significance: NVIDIA reported record-breaking Q3 FY25 revenue of $35.1 billion, marking a staggering 94% year-over-year growth. This trajectory reflects not only robust demand for its cutting-edge hardware but also its strategic alignment with the needs of an AI-driven future.

Global AI Race: The Geopolitical Context

The race to dominate AI is as much a geopolitical contest as it is an economic one. Leading nations are aware that AI will dictate their technological, economic, and military standing for decades to come. The U.S. and China lead the charge, accounting for a significant share of global AI investments, from semiconductor development to cloud infrastructure and national AI initiatives.

In this context, NVIDIA occupies a strategic position. The U.S.-based company benefits from policies such as the CHIPS Act, which aims to reduce reliance on foreign semiconductor manufacturing and bolster domestic innovation. These initiatives provide NVIDIA with critical support, helping it scale operations and maintain its technological edge.

Moreover, the global demand for AI solutions has extended beyond developed markets. Countries in Europe, Asia, and the Middle East are aggressively expanding their AI capabilities, driving increased adoption of NVIDIA’s hardware and software solutions. This broad geographic reach ensures that NVIDIA's growth is not overly reliant on any single region, making it a resilient player in an unpredictable geopolitical landscape.

NVIDIA's Technological Edge: Redefining AI Infrastructure

NVIDIA’s competitive advantage lies in its relentless innovation. At the heart of its success are its advanced GPUs, such as the Hopper H200 and Blackwell architectures. These chips are designed to tackle the immense computational demands of training large language models, performing real-time AI inference, and running complex simulations. NVIDIA's record Data Center revenue of $30.8 billion in Q3 FY25 highlights the explosive demand for its AI solutions.

Beyond hardware, NVIDIA's software ecosystem amplifies its impact. The company’s AI Enterprise suite simplifies the deployment of AI across industries, from healthcare to finance. Its Spectrum-X Ethernet platform addresses the growing need for high-speed networking in AI data centers, ensuring seamless integration between computing components. By combining cutting-edge hardware with purpose-built software, NVIDIA delivers unmatched value to its customers.

Collaboration plays a vital role in NVIDIA's strategy. Partnerships with cloud leaders such as AWS, Google Cloud, and Microsoft Azure enable the deployment of its AI platforms at scale. These alliances not only expand NVIDIA's market reach but also embed its technologies into critical digital infrastructures globally.

In addition, NVIDIA’s influence extends to education and workforce development. By partnering with institutions and governments to train AI professionals, NVIDIA is creating a virtuous cycle where its tools become indispensable in AI research and development.

Market Performance: Riding the AI Wave

NVIDIA’s financial success mirrors its technological dominance. The company reported a sequential revenue increase of 17% in Q3 FY25, fueled by growing demand for its data center and gaming products. This growth is even more impressive when viewed in the context of its competitors, who have struggled to keep pace in the high-performance AI hardware space.

What sets NVIDIA apart is its ability to capture value across multiple verticals. Its gaming segment, for example, reported $3.3 billion in Q3 FY25 revenue, driven by the popularity of its GeForce RTX GPUs. Meanwhile, its automotive division grew by an astounding 72% year-over-year, reflecting the increasing adoption of AI in autonomous vehicles and mobility solutions.

The company’s stock performance has also been a standout, with nearly 200% gains over the past year. NVIDIA’s market capitalization has seen exponential growth to reach $3.3 trillion, fueled by investor confidence in its ability to sustain leadership in the AI space. This momentum reflects not just short-term gains but a long-term belief in NVIDIA’s role as a foundational player in the global tech ecosystem.

Future Outlook: Opportunities and Risks

The future holds vast potential for NVIDIA as AI applications proliferate. Emerging technologies like autonomous vehicles, industrial robotics, and AI-driven healthcare solutions promise to open new revenue streams. NVIDIA's self-driving platform, for example, has already gained traction with automotive giants, driving record growth in its automotive segment.

However, the road ahead is not without challenges. Supply chain constraints, particularly for advanced chips, could limit NVIDIA's ability to meet surging demand. Regulatory hurdles, including export restrictions and data privacy concerns, also pose potential risks. Nevertheless, NVIDIA’s strategic investments in manufacturing capacity and its alignment with geopolitical priorities position it well to navigate these obstacles.

Investment Implications: A Strategic Opportunity

For investors, NVIDIA presents a rare combination of cutting-edge technology, robust financial performance, and strategic alignment with global priorities. Its dominance in AI hardware and software, coupled with its ability to adapt to emerging trends, makes it a compelling addition to any tech-focused portfolio. As AI reshapes industries and nations alike, NVIDIA stands out as a company poised to lead the next wave of technological and economic transformation.

Semiconductor Shortages Easing: Is Intel (INTC) Set for a Comeback in 2025?

Posted on by The INO.com Team

The semiconductor industry, often called the backbone of modern technology, has faced significant upheaval over the past few years. Supply chain disruptions triggered by the pandemic and skyrocketing demand from sectors like AI and electric vehicles led to what was termed "The Great Chip Shortage." However, recent developments suggest a turning tide. Supply chain stabilization and investment in manufacturing capacity are driving optimism across the industry.

Intel Corporation (INTC), a legacy giant in semiconductors, is at a critical juncture. While it has faced stiff competition from players like Advanced Micro Devices, Inc. (AMD) and NVIDIA Corporation (NVDA), it is making bold investments in product innovation and manufacturing. Could 2025 mark the start of a new era for Intel as the industry normalizes?

Market Context: The End of the Shortage?

Global semiconductor sales showed a strong recovery in the second half of 2023, reaching $527 billion. In 2024, the industry witnessed a balancing of supply and demand, with manufacturers like Taiwan Semiconductor Manufacturing Company (TSM) reporting surging profits driven by AI server processors.

The supply chain disruptions that plagued the sector are also abating. Governments have introduced measures to bolster domestic production, such as the U.S. CHIPS Act, which allocated $500 million to supply chain diversification efforts. Intel has been a significant beneficiary, securing $3 billion in government funding under the Secure Enclave program.

While AI-driven demand remains robust, segments like automotive and mobile chips have yet to recover fully. However, projections suggest a broader recovery by 2025, aligning with Intel's long-term strategy.

Intel’s Market Position: A Rebuilding Phase

Intel’s Q3 2024 financials reflect a company in transition. While revenue stood at $13.3 billion, a year-over-year decline of 6%, the company made strides in cost reduction, targeting $10 billion in savings by 2025. Its focus on innovation, particularly the Intel 18A process node, signals a push to regain process leadership. Products like Panther Lake for clients and Clearwater Forest for servers are scheduled for launch in 2025, positioning Intel to compete more aggressively.

Additionally, Intel's x86 Ecosystem Advisory Group, established with AMD and other industry leaders, aims to foster software development and hardware interoperability. Intel's new AI-focused products, such as the Xeon 6 and Core Ultra processors, highlight its ambition to dominate the AI PC category, a market it expects to ship 100 million units by 2025.

Investment Case: Growth Drivers and Tailwinds

As the chip shortage dissipates, Intel's investments in foundry capabilities and cutting-edge technology could yield substantial gains. The company’s partnership with Amazon Web Services (AWS) to develop custom Xeon chips underscores its foundry business potential.

Moreover, Intel’s government funding and alignment with global supply chain initiatives may insulate it from geopolitical risks while enabling it to scale domestic production. If Intel can capitalize on its upcoming launches, particularly in AI and advanced computing, it may capture significant market share.

However, macroeconomic conditions and evolving tech demands will play a critical role. Industry forecasts suggest global semiconductor sales may exceed $600 billion in 2024, with long-term growth driven by AI, electric vehicles, and 5G. Intel's ability to adapt to these trends will determine its trajectory.

Competition and Operational Challenges

Intel’s road to recovery is fraught with challenges. Competitors like Nvidia and AMD continue to set benchmarks in performance and innovation. Nvidia’s recent gains in AI server processors and AMD’s edge in chip architecture present formidable obstacles.

Operationally, Intel’s restructuring has been costly, with $15.9 billion in impairment charges affecting profitability. Manufacturing delays and market dynamics could further hinder the rollout of its 2025 product roadmap.

Moreover, geopolitical risks, including U.S.-China tensions, may disrupt global supply chains. As Intel aims to diversify its manufacturing footprint, these challenges remain a significant wildcard.

Investor Outlook: What Should You Do?

For investors, Intel represents a blend of risk and opportunity. The easing of the semiconductor shortage and Intel’s strategic investments suggest a potential upside. However, persistent competition and operational hurdles mean the stock may require patience.

Consider Intel if you have a long-term horizon and believe in its capacity to leverage innovation and supply chain resilience. Keep an eye on key milestones like the 2025 launch of Panther Lake and Clearwater Forest and monitor its financial health for signs of sustainable growth.

AI Surge Fuels Nvidia & Broadcom Stocks: Buy Now or Wait for a Dip?

Posted on by The INO.com Team

Artificial intelligence (AI) has been a red-hot investment theme over the past two years, with its ability to learn and improve without much human input, making it valuable across nearly every industry. PwC predicts that AI could boost the global economy by $15.7 trillion by 2030.

With AI adoption on the rise, chip stocks like NVIDIA Corporation (NVDA) and Broadcom Inc. (AVGO) are well-positioned for long-term growth. But with these stocks hovering near their 52-week highs, is now the right time to buy, or should you wait for a potential dip? Let’s find out.

Stock to Buy: NVIDIA Corporation (NVDA)

Nvidia has been one of the most talked-about stocks this year, and for good reason. As one of the hottest large-cap stocks this year, the Wall Street darling is up nearly 14% in just the past week and more than 190% over the past year. It is trading just 5.6% below its 52-week high of $140.76. Much of this excitement is fueled by the company’s new Blackwell platform, which has both investors and customers eagerly watching its next moves.

Several analysts remain bullish on NVDA, and it’s easy to see why. KeyBanc recently raised its fiscal 2025 sales forecast to $130.60 billion, driven in part by Nvidia’s new AI chips, which are expected to contribute around $7 billion to fourth-quarter revenues.

Additionally, the company’s collaboration with Foxconn to build Taiwan’s largest supercomputer, along with a massive manufacturing facility in Mexico, underscores Nvidia’s commitment to scaling its operations while also minimizing supply chain risks.

In the second quarter that ended July 28, 2024, Nvidia’s revenue increased 122% year-over-year to $30.04 billion, and 15% from the first quarter. This robust growth exceeded analysts’ expectations, who had forecasted around $28.75 billion. Its AI-driven Data Center Group generated $26.30 billion in revenue, resulting in a 16% sequential gain and a triple-digit growth of 154% over the same period last year.

On the bottom line, its operating income surged 174% from the year-ago value to $18.64 billion. NVDA’s non-GAAP net income amounted to $16.95 billion or $0.68 per share, compared to $6.74 billion or $0.27 per share in the previous year’s quarter, respectively. The chipmaker is now gearing up for new AI hardware releases based on the Blackwell architecture, which could boost demand in the coming years.

Moreover, it forecasted a revenue of $32.50 billion, plus or minus 2%, for its fiscal third quarter, representing an 81.6% growth from the year-ago quarter. However, this slightly falls short of the analysts’ estimates of $32.90 billion. Nvidia’s business continues to thrive and will likely report another blowout quarter next month.

In addition to its strong financials, the company has approved a massive $50 billion share buyback program, which could boost investor returns over time. This, combined with surging demand for AI platforms and upcoming product launches, makes NVDA a stock worth considering for long-term investors looking to buy on any significant dip.

Stock to Hold: Broadcom Inc. (AVGO)

Thanks to the escalating demand for its AI products, Broadcom delivered a better-than-expected earnings report with double-digit top-line growth, comfortably surpassing Wall Street’s estimates. The demand for AVGO’s products, essential for building Data Centers, has soared due to the extensive adoption of AI-powered applications, particularly within the enterprise sector.

The semiconductor division, which makes up 56% of its total revenue, has been the company’s primary growth driver, while the remaining 44% falls into the industrial software segment. To keep pace with the surge in demand for AI technology, Broadcom is investing heavily in its product lineup, aiming to solidify its foothold in the booming AI chip market.

This frenzy for AI chips, driven by hefty investments in AI models, has significantly boosted the company’s topline growth. For the third quarter that ended on August 4, 2024, AVGO’s net revenue increased 47% year-over-year to $13.07 billion, with triple-digit revenue growth in the Infrastructure Software segment to $5.79 billion. Its revenues came in slightly above the analysts’ estimate of $12.96 billion.

AVGO’s gross margin grew 7.5% from the year-ago value to $8.36 billion, while its non-GAAP operating income came in at $7.95 billion, up 11.2% year-over-year. On top of it, the company’s non-GAAP net income came in at $6.12 billion or $1.24 per share, up 33.2% and 18.1% year-over-year, respectively. Also, its adjusted EBITDA increased 41.7% from the prior year’s quarter to $8.22 billion.

Looking ahead, management anticipates the revenue for the fourth quarter to be around $14 billion (in line with analysts’ consensus estimates) and adjusted EBITDA to be approximately 64% of revenue, translating to about $9 billion. For the full year, Broadcom projects revenue of $51.50 billion, up from its previous forecast of $51 billion.

Moreover, its robust free cash flow of $4.79 billion enabled it to pay a quarterly dividend of $0.53 per share on September 19, 2024. With 13 consecutive years of dividend growth, AVGO stands out among semiconductor-focused enterprises due to its consistent and significant cash flow distributions to shareholders.

The company pays an annual dividend of $2.12 per share, yielding 1.21% on the current share price, with a four-year dividend yield of 2.50%. Over the past three and five years, its dividend payouts have grown at CAGRs of 13.5% and 14.7%, respectively.

When it comes to price performance, shares of AVGO have soared over 110% over the past year and returned nearly 62% year-to-date. The stock is trading just 2.4% below its 52-week high of $185.16. With accelerating revenue, robust profit margins, and significant exposure to the AI chip industry, AVGO has garnered immense investor interest. However, the stock’s current valuation might burn a hole in one’s pocket.

In terms of forward non-GAAP P/E, AVGO is trading at 36.11x, 50.8% higher than the industry average of 23.94x. Its forward EV/EBITDA and Price/Cash Flow of 27.77x and 37.69x are 92.6% and 66.7% higher than the respective industry averages of 14.42x and 22.61x. Furthermore, the stock’s forward Price/Sales multiple of 15.85 compares with the industry average of 2.85.

Hence, given the lofty valuation levels, it may be prudent for investors to await a more opportune entry point into the stock.

How China’s Stimulus Could Affect Tech Stocks Globally

Posted on by The INO.com Team

After months of sluggish economic growth and fears of missing its growth targets, China has unveiled a sweeping set of stimulus measures aimed at reviving its economy. These policies included cuts to interest rates, loans to investors and companies for stock buybacks, and promises of substantial fiscal support. The People’s Bank of China’s (PBOC) coordinated efforts are aimed at reducing borrowing costs and boosting confidence in an economy struggling with issues like the ongoing property crisis and high youth unemployment.

Despite some analysts questioning the long-term sustainability of the stimulus, the market has responded with enthusiasm. Mainland China's CSI 300 Index surged 8.5%, marking its best performance since 2008, while Hong Kong's Hang Seng Index rose by 4.2%.

As these aggressive policies aim to jump-start the struggling economy, the impact could reach far beyond China's borders, with global tech stocks poised to benefit significantly. Companies like Apple Inc. (AAPL), NVIDIA Corporation (NVDA), Taiwan Semiconductor Manufacturing Company Limited (TSM), and QUALCOMM Incorporated (QCOM) rely on China not only for manufacturing but also as a major consumer market. With lower interest rates and improved liquidity in China, demand for tech products could surge, directly benefiting these tech giants.

Furthermore, the PBOC’s promise of potential fiscal stimulus adds another layer of optimism. If China follows through on its hints of trillion yuan-level spending, particularly in infrastructure and technology sectors, it could further boost global tech companies that provide critical components for these developments.

Many are drawing parallels to 2008 when China’s swift and massive stimulus response to the global financial crisis jump-started not only its economy but also helped boost global demand. However, that stimulus left China with long-term challenges, including local government debt, overcapacity, and excess housing.

While some investors remain cautious after past false starts, the current stimulus package has injected new optimism into the market. Tech stocks, in particular, offer an attractive opportunity as lower interest rates make them more appealing for investors seeking higher returns. Therefore, fundamentally sound stocks like AAPL, NVDA, TSM, and QCOM could be worth considering for those looking to tap into the potential upside driven by China’s recovery efforts.

Stock to Hold:

Apple Inc. (AAPL)

With China being one of Apple's largest markets for premium tech products, the country’s economic recovery could stimulate demand for iPhones, MacBooks, and other high-end devices. Lower interest rates and improved liquidity might encourage consumers to invest in Apple’s premium offerings, further driving the company's revenue in this region.

For the third quarter of fiscal 2024, which ended June 29, 2024, AAPL’s total net sales increased 4.9% year-over-year to $85.78 billion, with $14.73 billion in sales from Greater China. Its gross margin rose 8.9% from the year-ago value to $39.68 billion, while its operating income came in at $25.35 billion, up 10.2% year-over-year. On the bottom line, AAPL’s net income and EPS amounted to $21.45 billion and $1.40, representing increases of 7.9% and 11.1%, respectively, from the prior year’s quarter.

Street expects AAPL’s revenue for the current year (ended September 2024) to increase marginally from the prior year to $390.52 billion, while its EPS is expected to grow by 9.2% year-over-year to $6.69. For the fiscal year 2025, both revenue and EPS are anticipated to reach $419.84 billion and $7.41, indicating a 7.5% and 10.7% year-over-year growth, respectively.

Shares of the dominant tech player have surged more than 36% over the past year and approximately 21% year-to-date. Also, its 12-month price target of $248.07 reflects a 6.5% potential upside.

However, while the outlook is promising, investors should remain cautious of geopolitical tensions that could affect production and sales. Ongoing U.S.-China trade disputes may disrupt Apple’s supply chain, leading to increased costs or delays. As Apple relies heavily on Chinese manufacturing, any escalation in tensions could pose risks to its market performance.

Stocks to Buy:

NVIDIA Corporation (NVDA)

With the frenzy around Artificial intelligence (AI) in the stock market, the AI darling Nvidia has been on an impressive run this year. The stock has surged over 145% year-to-date and nearly 179% in the past 12 months, thanks to the robust demand for its graphics processing units (GPUs), which help run and train AI algorithms.

Nvidia’s revenue for the second quarter that ended July 28, 2024, increased 122% year-over-year to $30.04 billion and exceeded the analysts’ expectations of $28.75 billion. The company's bottom line also remained buoyant, with operating income surging 174% from the year-ago value to $18.64 billion. NVDA’s non-GAAP net income amounted to $16.95 billion or $0.68 per share, compared to $6.74 billion or $0.27 per share in the previous year’s quarter, respectively.

Moreover, analysts remain bullish on the chipmaker’s long-term prospects. For the fiscal year ending January 2025, NVDA’s revenue and EPS are expected to grow by 106.1% and 119.2% from the prior year to $125.54 billion and $2.84, respectively.

Furthermore, out of 42 analysts that rated NVDA, 39 rated it Buy, while three rated it Hold. The 12-month median price target of $152.44 indicates a 25.5% upside potential from the last closing price. As China accelerates its focus on artificial intelligence (AI) and high-performance computing, this stock could boost your portfolio returns significantly.

Taiwan Semiconductor Manufacturing Company Limited (TSM)

As China's tech sector surges, demand for semiconductors is set to soar, potentially contributing nearly 19% to the country’s GDP by 2026. Headquartered in Hsinchu City, Taiwan, TSM manufactures, tests, and markets integrated circuits and other semiconductor products globally. Its products are used in automotive electronics, high-performance computing, and mobile device markets.

TSM’s net sales increased 40.1% year-over-year to NT$673.51 billion ($21.25 billion) in the second quarter that ended June 30, 2024. Its gross profit grew 37.6% from the prior year’s quarter to NT$358.13 billion ($11.29 billion), while its income from operations came in at NT$286.56 billion ($9.04 billion), up 41.9% year-over-year. In addition, the company’s net income and EPS increased 36.3% year-over-year to NT$247.85 billion ($7.82 billion) and NT$9.56, respectively.

The consensus EPS estimate of $6.60 for the current year ending December 2024 represents a 27.4% improvement year-over-year. The consensus revenue estimate of $88.40 billion for the same period indicates a 29.1% increase from the prior year.

Moreover, the stock has gained more than 99% over the past year, which is impressive. Its 12-month price target of $205 reflects an 18.4% potential upside.

QUALCOMM Incorporated (QCOM)

QCOM specializes in foundational technologies for the wireless industry. The company operates through three segments: Qualcomm CDMA Technologies; Qualcomm Technology Licensing; and Qualcomm Strategic Initiatives.

QCOM’s revenue increased marginally year-over-year to $9.39 billion in the fiscal second quarter (ended March 24, 2024). Its non-GAAP net income grew 14.1% from the year-ago value to $2.76 billion, while its EBIT rose 31.8% year-over-year to $2.49 billion over the period. The company’s non-GAAP EPS increased 13.5% from the year-ago value to $2.44.

Buoyed by its strong financial performance, the company paid a quarterly dividend of $0.85 per common share to its shareholders on September 26, 2024. QCOM pays an annual dividend of $3.40, which translates to a 2% yield on the current price. Plus, it has a payout ratio of 34.1%.

Street expects QCOM’s revenue for the fourth quarter (ended September 2024) to increase 13.8% from the prior year to $9.86 billion. Its EPS for the same period is expected to grow by 26.1% year-over-year to $2.55. It is no surprise that the company has topped the revenue and EPS estimates in each of the trailing four quarters.

Over the past year, the stock has returned nearly 50%. Moreover, out of 21 analysts that rated QCOM, 13 rated it Buy, while seven rated it Hold. The 12-month median price target of $218.25 indicates a 31.3% upside potential from the last closing price.

Can NVDA’s Share Buybacks and AI Innovation Drive the Next Rally?

Posted on by The INO.com Team

NVIDIA Corporation (NVDA) has undoubtedly been one of the hottest large-cap stocks this year, surging over 150% year-to-date and more than 195% in the past 12 months. This stellar performance is driven by the massive demand for its graphics processing units (GPUs), which help run and train AI algorithms.

For the second quarter that ended July 28, 2024, Nvidia’s revenue increased 122% year-over-year to $30.04 billion and 15% from the first quarter. This robust growth exceeded analysts’ expectations, who had forecasted around $28.75 billion. NVDA’s Data Center Group (primarily connected to its AI operations) generated $26.30 billion in revenue, resulting in a 16% sequential gain and a triple-digit growth of 154% over the same period last year.

The company's bottom line remained buoyant, with operating income surging 174% from the year-ago value to $18.64 billion. NVDA’s non-GAAP net income amounted to $16.95 billion or $0.68 per share, compared to $6.74 billion or $0.27 per share in the previous year’s quarter, respectively. The chipmaker is now gearing up for new AI hardware releases based on the Blackwell architecture, which could boost demand in the coming years.

Moreover, it forecasted a revenue of $32.50 billion, plus or minus 2%, for its fiscal third quarter, representing an 81.6% growth from the year-ago quarter. However, this slightly falls short of the analysts’ estimates of $32.91 billion.

Is NVDA’s Buyback a Boost for Earnings or a Sign of Investor Fatigue?

In addition to its strong financials, NVIDIA's board has approved a massive $50 billion share buyback program. This adds to the $7.5 billion remaining from its previous buyback plan. Share repurchases typically boost earnings per share by reducing the number of outstanding shares, making the stock more attractive to investors.

The company has already returned $15.4 billion to shareholders through repurchases and dividends during the first half of fiscal 2025. However, despite the strong financial performance and the buyback announcement, NVDA’s stock dropped around 10% after its earnings report. It seems investors had such high expectations that even strong results weren’t enough to impress them.

“Investors want more, more and more when it comes to Nvidia,” said Dan Coatsworth, investment analyst at AJ Bell. “It looks like investors might not have taken the average of analyst forecasts to be the benchmark for Nvidia's performance, instead, they've taken the highest end of the estimate range to be the hurdle to clear.”

On the brighter side, the company’s upcoming AI-focused chips, particularly the Blackwell architecture, are poised to meet rising demand and could reignite investor confidence. While its production has been slightly delayed, the company plans to ramp up shipments in the fourth quarter, with strong demand already building up.

Alongside Blackwell, Nvidia’s Hopper platform continues to see robust demand, and shipments of its upgraded H200 platform are targeting cloud service providers and large enterprises, with more demand expected in the second half of 2024. Thus, Nvidia still has plenty of fuel left to drive another rally.

Bottom Line

Thanks to the surging demand for its AI platforms, upcoming product launches, and a broadening market, we believe that Nvidia is well-positioned for continued expansion. The recent dip in its share price could simply be a brief pause before the next phase of growth unfolds.

Moreover, analysts remain bullish on the chipmaker’s long-term prospects. Out of 42 analysts that rated NVDA, 39 rated it Buy, while three rated it Hold. The 12-month median price target of $152.44 indicates a 22.9% upside potential from the last closing price. The price targets range from a low of $90 to a high of $200.

Therefore, investors looking for long-term opportunities could consider scooping up the shares of this tech giant before the stock regains momentum.