2024-07-08 04:57:46 ET
Summary
- NVIDIA recently briefly became the highest-valued company globally, with a market cap of $3.34 trillion.
- The upcoming release of the AI Blackwell chip family should help boost revenue growth.
- It faces competition from ASICs in the AI chip market, but is countering with strategies like Tensor Core GPUs, Deep Learning Accelerators, and entering the customized chip market.
- Investors should monitor the company's gross margins in future earnings reports for signs of deterioration.
Since I last wrote about NVIDIA ( NVDA ) (NVDA:CA) with a downgrade to hold, it briefly became the highest-valued company globally, reaching a market cap of $3.34 trillion. Of the top five largest global companies, it has risen the highest this year, far outdistancing its peers.
It may still have more gas in the tank. Morgan Stanley ( MS ) analyst Joseph Moore increased his price target on the stock to $144 from $116 on July 1. A Seeking Alpha article stated , " Recent checks from Taiwan and China were more than enough to keep the firm confident on near-term numbers and the catalyst path remains "strong," analyst Joseph Moore wrote, citing the "very strong surge" in H20 builds. " The reference to "H20 builds" is a graphics processing unit ("GPU") based AI chip that NVIDIA is still able to supply to China for AI training. ...
Read the full article on Seeking Alpha
For further details see:
Nvidia Stock: Why Holding Strong Makes Sense For Existing Shareholders