Three Growth Stocks to Buy and Hold
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Fool
- Nvidia's Market Leadership: Nvidia (NVDA) has established itself as a leader in the AI revolution with its graphics processing units (GPUs), boasting a market cap of $4.4 trillion, and is expected to continue benefiting from the expansion of data center infrastructure, maintaining strong growth prospects.
- Meta's AI Integration: Meta Platforms (META) has achieved a 24% revenue growth by rapidly adopting AI technologies, with ad impressions increasing by 18%, and is guiding for Q1 2026 revenue growth to accelerate to between 26% and 34%, indicating robust momentum in the social media advertising market.
- Amazon's Dual Advantage: Amazon (AMZN) is trading at a forward P/E ratio of over 25, benefiting from strong growth in both its e-commerce and cloud computing businesses, particularly due to operational leverage from investments in robotics and AI, which have significantly boosted profit growth.
- Long-Term Investment Value: All three companies hold leading positions in their respective markets with substantial growth potential, making them suitable for long-term investors, especially as the stock market hovers near all-time highs.
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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: 180.340
Low
200.00
Averages
264.97
High
352.00
Current: 180.340
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 Set to Report Earnings, Stock Poised for Surge
- New Architecture Launch: Nvidia is set to unveil its new Rubin chip architecture in 2024, which allows developers to train models with 75% fewer GPUs, thereby reducing inference costs by up to 90%, significantly enhancing AI development efficiency and lowering enterprise costs.
- Strong Earnings Expectations: Nvidia is projected to report $65.5 billion in revenue for Q4 of fiscal 2026, with an annual total expected to reach $213.3 billion, reflecting a 62% year-over-year growth, indicating that the company's robust performance in the data center market will continue to drive stock price increases.
- Positive Market Reaction: Analysts forecast earnings per share of $4.69 for Nvidia, and if actual results exceed expectations, it will further boost market confidence in its stock, potentially leading to significant price appreciation.
- Optimistic Future Outlook: Management anticipates first-quarter revenue for fiscal 2027 to hit $70.7 billion, and if this forecast is raised, it will provide strong support for Nvidia's stock price, further attracting investor interest.
See More
Nvidia's H200 Chip Sales to China Await Approval
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- Order Stagnation: Chinese customers are refraining from placing orders for H200 chips with Nvidia until it is clear whether they can secure export licenses, potentially limiting Nvidia's short-term revenue in China.
- Significant Market Potential: CEO Jensen Huang has indicated that the Chinese market could be worth $50 billion annually, and securing export licenses could lead to substantial revenue growth opportunities for the company.
- Complex Regulatory Review: Although the Commerce Department has completed its analysis of H200 chip exports, the State Department is pushing for tougher restrictions, which could affect Nvidia's export strategy and competitiveness in the Chinese market.
See More
The Evolution of AI Trading: From Market Rescuer to Disruptor
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Vulnerability of Sectors: There is a growing perception that various tech sectors and others may be at risk due to the significant funding requirements associated with AI development.
Shift in Investment Focus: As a result of these concerns, investors are beginning to explore alternative investment opportunities outside of AI-related sectors.
Market Uncertainty: The uncertainty surrounding AI's future implications is causing a shift in market dynamics, prompting caution among investors.
See More
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- Financial Performance: The company reported earnings, revenue, and royalty revenue for the December quarter that exceeded Wall Street's expectations.
See More
Nvidia and AMD Executives Discuss AI Market Outlook
- Nvidia CEO's Perspective: At the Cisco AI Summit, Nvidia CEO Jensen Huang described the recent sell-off of software stocks as 'illogical,' emphasizing that AI tools are not being replaced but are accelerating, which could influence investor confidence in tech stocks.
- Strong Demand for AMD: AMD CEO Lisa Su noted that despite a weaker-than-expected forecast, demand for its data center products and CPUs is significantly increasing due to AI acceleration, with expectations of reaching an 'inflection point' later this year, potentially boosting AMD's market performance.
- Anthropic's Ad Policy: Anthropic announced that its AI chatbot Claude will remain ad-free, prioritizing user interests and generating revenue through enterprise contracts and paid subscriptions, a strategy that may affect its positioning in the competitive AI market.
- OpenAI Comparison: In contrast, OpenAI recently stated it would begin testing ads in its AI chatbot ChatGPT, highlighting differing strategies that could impact user experience and market reactions.
See More
Three Growth Stocks to Buy and Hold
- Nvidia's Market Leadership: Nvidia (NVDA) has established itself as a leader in the AI revolution with its graphics processing units (GPUs), boasting a market cap of $4.4 trillion, and is expected to continue benefiting from the expansion of data center infrastructure, maintaining strong growth prospects.
- Meta's AI Integration: Meta Platforms (META) has achieved a 24% revenue growth by rapidly adopting AI technologies, with ad impressions increasing by 18%, and is guiding for Q1 2026 revenue growth to accelerate to between 26% and 34%, indicating robust momentum in the social media advertising market.
- Amazon's Dual Advantage: Amazon (AMZN) is trading at a forward P/E ratio of over 25, benefiting from strong growth in both its e-commerce and cloud computing businesses, particularly due to operational leverage from investments in robotics and AI, which have significantly boosted profit growth.
- Long-Term Investment Value: All three companies hold leading positions in their respective markets with substantial growth potential, making them suitable for long-term investors, especially as the stock market hovers near all-time highs.
See More
Nvidia Set to Report Earnings, Stock Poised for Surge
- New Architecture Launch: Nvidia is set to unveil its new Rubin chip architecture in 2024, which allows developers to train models with 75% fewer GPUs, thereby reducing inference costs by up to 90%, significantly enhancing AI development efficiency and lowering enterprise costs.
- Strong Earnings Expectations: Nvidia is projected to report $65.5 billion in revenue for Q4 of fiscal 2026, with an annual total expected to reach $213.3 billion, reflecting a 62% year-over-year growth, indicating that the company's robust performance in the data center market will continue to drive stock price increases.
- Positive Market Reaction: Analysts forecast earnings per share of $4.69 for Nvidia, and if actual results exceed expectations, it will further boost market confidence in its stock, potentially leading to significant price appreciation.
- Optimistic Future Outlook: Management anticipates first-quarter revenue for fiscal 2027 to hit $70.7 billion, and if this forecast is raised, it will provide strong support for Nvidia's stock price, further attracting investor interest.
See More
Nvidia's H200 Chip Sales to China Await Approval
- Approval Delays: Nvidia's sales of H200 AI chips to China are still pending final approval from Washington nearly two months after Trump greenlit exports, which may impact Nvidia's sales strategy in the Chinese market.
- Order Stagnation: Chinese customers are refraining from placing orders for H200 chips with Nvidia until it is clear whether they can secure export licenses, potentially limiting Nvidia's short-term revenue in China.
- Significant Market Potential: CEO Jensen Huang has indicated that the Chinese market could be worth $50 billion annually, and securing export licenses could lead to substantial revenue growth opportunities for the company.
- Complex Regulatory Review: Although the Commerce Department has completed its analysis of H200 chip exports, the State Department is pushing for tougher restrictions, which could affect Nvidia's export strategy and competitiveness in the Chinese market.
See More
The Evolution of AI Trading: From Market Rescuer to Disruptor
AI's Impact on Investor Sentiment: Investors are increasingly concerned that the rise of artificial intelligence, despite its current early stage, could negatively affect the stock market rally.
Vulnerability of Sectors: There is a growing perception that various tech sectors and others may be at risk due to the significant funding requirements associated with AI development.
Shift in Investment Focus: As a result of these concerns, investors are beginning to explore alternative investment opportunities outside of AI-related sectors.
Market Uncertainty: The uncertainty surrounding AI's future implications is causing a shift in market dynamics, prompting caution among investors.
See More
Arm Holdings Posts Record Profits, Yet Stock Prices Decline.
- Company Overview: Arm Holdings is a British semiconductor and software design company.
- Financial Performance: The company reported earnings, revenue, and royalty revenue for the December quarter that exceeded Wall Street's expectations.
See More
Nvidia and AMD Executives Discuss AI Market Outlook
- Nvidia CEO's Perspective: At the Cisco AI Summit, Nvidia CEO Jensen Huang described the recent sell-off of software stocks as 'illogical,' emphasizing that AI tools are not being replaced but are accelerating, which could influence investor confidence in tech stocks.
- Strong Demand for AMD: AMD CEO Lisa Su noted that despite a weaker-than-expected forecast, demand for its data center products and CPUs is significantly increasing due to AI acceleration, with expectations of reaching an 'inflection point' later this year, potentially boosting AMD's market performance.
- Anthropic's Ad Policy: Anthropic announced that its AI chatbot Claude will remain ad-free, prioritizing user interests and generating revenue through enterprise contracts and paid subscriptions, a strategy that may affect its positioning in the competitive AI market.
- OpenAI Comparison: In contrast, OpenAI recently stated it would begin testing ads in its AI chatbot ChatGPT, highlighting differing strategies that could impact user experience and market reactions.
See More
Three Growth Stocks to Buy and Hold
- Nvidia's Market Leadership: Nvidia (NVDA) has established itself as a leader in the AI revolution with its graphics processing units (GPUs), boasting a market cap of $4.4 trillion, and is expected to continue benefiting from the expansion of data center infrastructure, maintaining strong growth prospects.
- Meta's AI Integration: Meta Platforms (META) has achieved a 24% revenue growth by rapidly adopting AI technologies, with ad impressions increasing by 18%, and is guiding for Q1 2026 revenue growth to accelerate to between 26% and 34%, indicating robust momentum in the social media advertising market.
- Amazon's Dual Advantage: Amazon (AMZN) is trading at a forward P/E ratio of over 25, benefiting from strong growth in both its e-commerce and cloud computing businesses, particularly due to operational leverage from investments in robotics and AI, which have significantly boosted profit growth.
- Long-Term Investment Value: All three companies hold leading positions in their respective markets with substantial growth potential, making them suitable for long-term investors, especially as the stock market hovers near all-time highs.
See More
