Nvidia vs Meta: Analyzing AI Investment Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Nvidia Revenue Surge: Nvidia's revenue soared to over $130 billion in the past year, driven by its leading position in the AI chip market, indicating strong market demand and future growth potential.
- Meta's AI Strategic Positioning: Meta is developing AI features across its social media platforms, which, while not generating direct revenue yet, is expected to significantly boost advertising revenue in the future, enhancing its market competitiveness.
- Stock Price and Valuation Comparison: Nvidia's P/E ratio stands at 37x, and despite a 38% rise in stock price over the past year, it is still considered reasonable, while Meta's P/E ratio is only 19x, highlighting its stock's attractiveness.
- Risk Management and Investment Returns: Meta is cautiously managing risks in its AI investments, maintaining earnings growth and paying dividends despite not generating substantial direct revenue yet, showcasing its potential and stability for the future.
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: 183.320
Low
200.00
Averages
264.97
High
352.00
Current: 183.320
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.
