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. The chip sector saw a brief recovery last week after a large sell-off, with Nvidia (NVDA) once again leading the charge. Looking forward, chip stocks look to regain momentum after August volatility, b…
Nvidia’s Explosive Growth Faces New Challenges
- NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally.
- Semiconductor stocks are likely to start rallying gain in October after the historically weak September passes.
- Therefore, even with the future strategy focused on robotics and automation, it is unlikely that NVDA will experience the same level of growth it has seen over the past two years ever again.
- For example, its Isaac Lab is designed for running parallel simulations to aid robot learning.
- However, the stock recently became overvalued due to the excitement surrounding AI and data center expansion.
NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California. 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 reaffirmed its AI prowess in its third quarter earnings report of 2016.
NVIDIA
The average NVDA stock price target of $144.17 suggests a 37.3% upside potential. While this outlook is very positive, retail investors—who are now heavily invested in Nvidia—could be the primary reason the stock might become undervalued if it falls further in price over the next year. Nvidia has a wide economic moat, thanks to its market leadership in graphics processing units, or GPUs, hardware and software tools needed to enable the exponentially growing market around artificial intelligence. In the long run, we expect tech titans to strive to find second-sources or in-house solutions to diversify away from Nvidia in AI, but most likely, these efforts will chip away at, but not supplant, Nvidia’s AI dominance. 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. 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.
Current stock price for NVIDIA (NVDA)?
The quarterly cash dividend was payable on June 28, 2024 to stockholders of record on June 11, 2024. We’d like to share more about how we work and what drives our day-to-day business. Stocks mixed as markets brace for key inflation data this week.
As a result, the future growth outlook for the stock remains robust. Nvidia (NVDA 5.77%) 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.
BofA forecasts semiconductor stocks’ rebound despite ongoing volatility: Key reasons explained
I have set a 12-month price target of $150 for NVDA stock, which I consider fair value based on future fundamental growth rate estimates and anticipated valuation multiple contraction. Despite this, there is a significant chance of sentiment remaining bearish through Fiscal 2025, despite strong earnings growth projected for Fiscal 2026. NVDA’s current forward P/E ratio is 40, which is why I consider $150 fair value on a TTM basis for the next 12 months. Turning to Wall Street, Nvidia is rated as a Strong Buy based on 37 Buy ratings and four Hold ratings from analysts.
Nvidia shares are back on an upward trajectory ahead of its second-quarter earnings report at the end of the month. In 2015, Nvidia dove head-first into the artificial intelligence space, releasing its first “Drive” chip for autonomous driving in cars, as well as its “Jetson” chip made for embedded computing on smaller AI-powered devices. When, in 2004, the SLI connection standard was released, Nvidia saw a huge bump in the processing power it could achieve on a single machine.
However, this rate drops to 38% for Fiscal 2026 and 14% for Fiscal 2027. This diminishing growth outlook suggests that the bullish sentiment around NVDA stock may not be sustainable, especially given the stock’s high P/E ratio of 61x and P/S ratio of nearly 33x. Nvidia is a leading AI chip vendor today, but other powerful chipmakers and tech titans are focused on in-house chip development. Nvidia’s GPUs offer industry-leading parallel processing, which was historically needed in PC gaming applications, but has expanded into crypto mining, AI, and perhaps future applications too. Semiconductor stocks could be set for a rebound in the fourth quarter as seasonal headwinds ease, according to Bank of America Securities analysts.
It was after 2005 when Nvidia stock price started generating interest and attention but still faced peaks and troughs. In my opinion, Nvidia is much more fairly valued after the recent 25% correction in price. I had anticipated this valuation for the second half of 2025, but it appears to have arrived early. That being said, the stock could continue to decline over the next few quarters. If it does, I will be looking to buy a large stake in NVDA, as I believe the long-term growth prospects remain intact amid trends in robotics and automation. Wall Street’s consensus estimate for NVDA’s EPS growth for Fiscal 2025 is 110%.
China’s Huawei Technologies is close to introducing a new chip for artificial intelligence use to challenge Nvidia in China amid U.S. sanctions, the Wall Street Journal reported on Tuesday, citing sou… NVIDIA Corp NVDA stock has shown both ups and downs and a strong ability to bounce back. Recent changes in its stock price can mainly be linked to concerns over possible U.S. restrictions on semicondu… Perhaps the most consequential advance in Nvidia’s history was the 2006 launch of the company’s CUDA development platform.
Nvidia stock price rose about 30% after the company nearly doubled analyst earnings expectations. The company’s data center business, which is where many of its chips are bought for AI processing, brought in $240 million in revenue in the quarter. 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%.
According to 41 analysts, the average rating for NVDA stock is “Strong Buy.” The 12-month stock price forecast is $130.88, which is an increase of 13.47% from the latest price. In May of 2017, Nvidia released its Volta architecture of chips, that was such a dramatic increase in computing power that Nvidia stock price shot up about 17%, or $18 in a single day. Additionally, the AI chip market, which is still expanding, is becoming increasingly competitive as companies like Advanced Micro Devices (AMD), Intel (INTC), and smaller entrants like Groq and Cerebras position themselves. Nvidia (NVDA) is currently one of the most exciting companies in the world.
We’ve been accustomed to bullish sentiment surrounding the company’s massive fundamental growth rates for so long. However, as these begin to contract, the market might sell off based on herd psychology rather than actual revenue and earnings growth. That’s why I think some more downward momentum is due, but it will present even more of a buying opportunity. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Nvidia has been touting the importance of developing AI systems for countries.
China’s Huawei Technologies is close to introducing a new chip for artificial intelligence use, overcoming U.S. sanctions to challenge Nvidia NVDA 4.08%increase; green up pointing triangle in the Chin… The company recently announced Project GR00T, a foundation model for humanoid robots. Additionally, it has developed Jetson Thor, a new computing platform for humanoid robots.