AMD and Nvidia's AI Market Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Should l Buy NVDA?
Source: Fool
- AMD Earnings Surge: AMD reported a 34% year-over-year revenue increase, exceeding $10 billion, with gross margin rising from 51% to 54%, indicating enhanced profitability; however, the stock fell 17% post-report, reflecting market caution regarding future growth.
- Strong Market Demand: CEO Lisa Su stated that AMD is entering a multi-year demand super cycle for high-performance and AI computing, expecting a compound annual growth rate exceeding 35% over the next three to five years, showcasing the company's strategic positioning in the AI sector.
- Nvidia Earnings Expectations: Nvidia is projected to report a 67% year-over-year revenue increase, surpassing $65 billion, on February 25; despite concerns about high valuations and potential AI bubbles, strong demand may drive performance beyond expectations.
- Investor Sentiment Fluctuations: Although Nvidia is likely to release positive earnings, investors may react negatively in the short term due to concerns about the sustainability of AI spending, similar to AMD's situation, potentially providing long-term investors with an opportunity to buy shares at reasonable prices.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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