Nvidia's Stock Volatility and Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Nvidia reported record revenue of $5 billion in Q4 of fiscal 2021, despite GPU shortage fears, leading to a 125% stock price increase that year, showcasing strong market demand and investor confidence.
- Data Center Driving Force: Currently, the data center segment has become the primary source of Nvidia's revenue growth, delivering over $51 billion in Q3 alone, which is more than ten times the total revenue from five years ago, reflecting robust AI demand.
- Optimistic Future Outlook: Management forecasts fourth-quarter revenue to reach $65 billion, representing a 65% growth, indicating that Nvidia's growth narrative remains strong and investors are optimistic about future performance.
- Long-Term Investment Returns: Over the past five years, a $100 investment in Nvidia stock would now be worth $1,479, yielding a staggering 1,380% return, demonstrating the value of holding through volatility.
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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: 192.510
Low
200.00
Averages
264.97
High
352.00
Current: 192.510
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.
Nvidia Stock Soars 1,330% Over Five Years Amid AI Boom
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- Future Growth Potential: Nvidia's revenue and earnings per share are projected to grow at compound annual rates of 46.8% and 48.3%, respectively, between fiscal 2025 and fiscal 2028, attracting investors seeking significant upside potential and further solidifying its market position.
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