NVIDIA Stock Analysis: Is Now the Time to Buy?
Initially known for its graphics cards, NVIDIA (NASDAQ:NVDA) has evolved into a leader in AI chips under the leadership of CEO Jensen Huang. Despite recent declines, NVIDIA stock has seen a surge of 116% in 2024 and 130% over the past year.
With a 629% increase in earnings per share, some investors are questioning the future trajectory of this stock. However, many growth investors believe that NVIDIA stock is still trading at a justified valuation, considering its impressive growth rates.
While concerns about future growth persist, NVIDIA’s Blackwell architecture shows promise, and there are several growth catalysts on the horizon that investors should be excited about.
Analysts are optimistic about NVIDIA’s upcoming Q2 earnings report, with Barclays highlighting it as a potential catalyst for large-cap tech stocks. Despite recent market volatility, Barclays believes that NVIDIA’s results could impact investor sentiment about AI investments.
Although the delay in NVIDIA’s next-gen Blackwell B200 AI chips has caused some setbacks, analysts from Mizuho see significant upside ahead for the stock. Other Wall Street analysts also maintain a positive outlook on NVIDIA, with a consensus average target price of $141.29.
While concerns about market dominance and chip delays exist, NVIDIA remains a leader in AI chips. CEO Jensen Huang’s strong revenue projections for the company add to its appeal, despite potential regulatory challenges.
In conclusion, with ongoing tech volatility and strong demand for NVIDIA’s AI chips, gradually buying NVIDIA stock in August could be a wise strategy. Despite potential headwinds, NVIDIA has a track record of being a profitable investment in the long run.