{"id":108412,"date":"2024-09-29T17:44:02","date_gmt":"2024-09-29T10:44:02","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=108412"},"modified":"2024-09-29T17:44:02","modified_gmt":"2024-09-29T10:44:02","slug":"nvidia-stock-nvda-is-still-a-long-term-winner-no-matter-the-noise","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=108412","title":{"rendered":"Nvidia Stock (NVDA) Is Still a Long-Term Winner, No Matter the Noise"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>Artificial Intelligence (AI) prodigy Nvidia <a href=\"https:\/\/www.tipranks.com\/stocks\/nvda?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:(NVDA);elm:context_link;itc:0;sec:content-canvas\" class=\"link \">(NVDA)<\/a>, the world\u2019s third-highest-valued stock, experienced a material decline in market capitalization following its Q2 earnings in late August. However, NVDA stock has shown some vigor again, rising 5% in the last week. After temporarily surpassing the $3 trillion milestone earlier this year, investors are wondering what the future will hold. \u00a0My thesis remains unchanged \u2014 I\u2019m bullish on NVDA shares as an investment due to its clear AI supremacy and exponential growth potential.<\/p>\n<h2><strong>NVDA\u2019s Long-Term AI-Driven Growth Trajectory Remains Intact<\/strong><\/h2>\n<p>It is well known that NVDA is positioned for a long runway of growth with top-notch clients like Microsoft <a href=\"https:\/\/www.tipranks.com\/stocks\/msft?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:(MSFT);elm:context_link;itc:0;sec:content-canvas\" class=\"link \">(MSFT)<\/a>, Alphabet <a href=\"https:\/\/www.tipranks.com\/stocks\/googl?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:(GOOGL);elm:context_link;itc:0;sec:content-canvas\" class=\"link \">(GOOGL)<\/a>, Meta <a href=\"https:\/\/www.tipranks.com\/stocks\/meta?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:(META);elm:context_link;itc:0;sec:content-canvas\" class=\"link \">(META)<\/a>, and Amazon <a href=\"https:\/\/www.tipranks.com\/stocks\/amzn?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:(AMZN);elm:context_link;itc:0;sec:content-canvas\" class=\"link \">(AMZN)<\/a> bulking up on their AI efforts. However, beyond these leading customers, Nvidia\u2019s AI penetration is still rising across all industries, increasing my optimism for NVDA stock. Enterprises across industries and geographies are eager to incorporate AI benefits into their operations. Likewise, NVDA continues to <a href=\"https:\/\/www.tipranks.com\/news\/the-fly\/nvidia-ceo-jensen-huang-presenting-at-t-mobile-capital-markets-day?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:enter into collaborations;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">enter into collaborations<\/a> with top businesses.<\/p>\n<p>There\u2019s a reason enterprises are flocking to NVDA for their AI ambitions. Beyond being the leader in AI GPU processors, NVDA provides a complete end-to-end AI infrastructure that supercharges productivity. That\u2019s something that few, if any, of its global AI peers can deliver.<\/p>\n<h2><strong>NVDA Remains a One-Stop AI Powerhouse with Margin Growth <\/strong><\/h2>\n<p>Another reason for my optimism about NVDA is <a href=\"https:\/\/www.tipranks.com\/experts\/insiders\/jen-hsun-huang?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:CEO Jensen Huang;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">CEO Jensen Huang<\/a>\u2018s relentless focus. He is committed to transforming NVDA into a fully AI-driven data center powerhouse that covers all aspects of hardware and software under the NVDA brand.<\/p>\n<p>This strategy is a key reason why NVDA can maintain premium pricing for its products, contributing to steady growth in its profit margins. However, critics argue that NVDA\u2019s exceptional revenue and margin growth may not be sustainable. Some members of the investment community are worried about a slowdown in revenue growth over the coming years.<\/p>\n<p>For context, NVDA reported an extraordinary 217% increase in its data center revenues for fiscal 2024. While that growth is expected to moderate to around 130% in 2025, this remains an impressive triple-digit figure, especially considering the strong FY2024 baseline for comparison. Although lower than today\u2019s pace, these are still remarkable growth projections for the future. I view bullish analyst estimates as a reason to remain confident in this AI leader, particularly as the disruptive potential of generative AI is only beginning to unfold.<\/p>\n<p>Demand for NVDA\u2019s chips is robust and will boost future revenues in the coming quarters. Therefore, despite some investor concerns, I expect NVDA will continue to maintain its clear AI dominance with an unbeatable competitive moat and best-in-class AI products and services.<\/p>\n<h2><strong>A Discussion of Nvidia\u2019s Impressive Quarterly Earnings<\/strong><\/h2>\n<p>Nvidia posted yet another stellar Q2 result on August 28, 2024, driven by accelerated computing and the continued momentum of generative AI.\u00a0<a href=\"https:\/\/www.tipranks.com\/stocks\/nvda\/earnings?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Adjusted earnings of $0.68 per share;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Adjusted earnings of $0.68 per share<\/a>\u00a0handily beat the consensus analyst estimate of $0.65 per share. The figure came in much higher (+152%) than the Fiscal Q2-2023 figure of $0.27 per share.<\/p>\n<p>The company posted a 122% year-over-year revenue growth, delivering $30.04 billion for the three months ending July 31 and surpassing analysts\u2019 projections. Importantly, Data Center revenues, the company\u2019s crown-jewel division, grew 154% year-over-year to $26.3 billion. Additionally NVDA\u2019s adjusted gross margin expanded 5 percentage points to 75.1% from 70.1% a year ago. Many investors were apparently hoping for even bigger numbers, and therefore the stock dropped slightly following the Q2 report. Shares then continued a downtrend until they bottomed out on September 6, just above the $100 level.<\/p>\n<p>Nvidia\u2019s guidance for the 3rd quarter appeared less promising to investors, with\u00a0revenues\u00a0expected to reach about $32.5 billion. Guidance came in below expectations. Adjusted gross margins are forecast to level off at about 75%, versus 75.15% delivered in Q2.<\/p>\n<h2><strong>NVDA\u2019s Insider Selling Concerns are Over<\/strong><\/h2>\n<p><a href=\"https:\/\/www.tipranks.com\/stocks\/nvda\/insider-trading?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Insider selling at Nvidia;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Insider selling at Nvidia<\/a> added downward pressure on NVDA shares in recent months. CEO Jensen Huang sold NVDA shares across multiple transactions from June to September, but it\u2019s important to know that those sales were part of a predetermined trading plan adopted in March. This plan allowed Huang to sell up to six million NVDA shares by the end of Q1 2025.<\/p>\n<p>Notably, Huang has completed sales of more than $700 million worth of NVDA stock. Despite the significance of these sales, he remains the largest individual shareholder of the company. At last report, Huang held 786 million shares through various trusts and partnerships, and 75.3 million shares directly, according to company filings. Combined, Huang controls a ~3.5% stake in the company, with an approximate total of 859 million shares.<\/p>\n<h2><strong>NVDA Valuation Isn\u2019t Expensive, Given Its Earnings Growth Prowess<\/strong><\/h2>\n<p>Investors may have been hesitant to buy NVDA stock at current levels, pointing to the stock\u2019s extraordinary run as well as due to concerns about the company\u2019s and slowing growth.<\/p>\n<p>On the contrary, however, my contention is that NVDA stock is not as expensive as it may seem. Currently, it\u2019s trading at a forward P\/E ratio of about 43x (based on FY2025 earnings expectations). This is actually cheaper than some valuation multiples of its peers. For instance, NVDA\u2019s closest competitor and U.S.-based semiconductor company, Advanced Micro Devices, carries a 46.8x forward P\/E. Interestingly, NVDA\u2019s current valuation still reflects a 10% discount to its five-year average forward P\/E of 47.3x.<\/p>\n<p>Given NVDA\u2019s consistent outperformance and strong growth potential, the current valuation appears reasonable and justified. Any future dip in the stock price could represent a solid buying opportunity, in my opinion, especially considering Nvidia\u2019s immense potential in the rapidly expanding AI market.<\/p>\n<h2><strong>Is NVDA Stock a Buy or Sell, According to Analysts?<\/strong><\/h2>\n<p>With 39 Buys and three Hold ratings from analysts in the last three months, the consensus TipRanks rating is a Strong Buy. The\u00a0<a href=\"https:\/\/www.tipranks.com\/stocks\/nvda\/forecast?utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:average Nvidia stock target price of $152.44;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">average Nvidia stock target price of $152.44<\/a>\u00a0implies potential upside of about 26% for the next year.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 700px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:77%\"><a class=\"link\" href=\"https:\/\/www.tipranks.com\/stocks\/nvda\/forecast?utm_source=finance.yahoo.com&amp;utm_medium=referral\" data-ylk=\"\"><img decoding=\"async\" class=\"caas-img caas-lazy\" alt=\"\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/MCHu2.9QV.q6883mx0yStA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTc0MQ--\/https:\/\/media.zenfs.com\/en\/tipranks_452\/454725c0f033983565f78bdd23356b16\"\/><img decoding=\"async\" alt=\"\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/MCHu2.9QV.q6883mx0yStA--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTc0MQ--\/https:\/\/media.zenfs.com\/en\/tipranks_452\/454725c0f033983565f78bdd23356b16\" class=\"caas-img\"\/><\/a><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<h2><strong>Conclusion: Consider NVDA Stock for Its Long-Term AI Potential<\/strong><\/h2>\n<p>Despite recent weakness, NVDA shares have nearly tripled over the past year compared to a rise of about 37% for the Nasdaq 100. The post-earnings sell-off for NVDA stock, in my view, was largely driven by profit-taking. After bottoming near $100, the stock appears to be in recovery mode now.<\/p>\n<p>In the near term, I believe ongoing economic and political uncertainties may keep the stock range-bound. However, I view any dips as buying opportunities. I see NVDA as a strong long-term investment given the significant continued potential of AI.<\/p>\n<p>Read full\u00a0<a href=\"https:\/\/www.tipranks.com\/legal\/disclosure-1?ref=blog&amp;utm_source=finance.yahoo.com&amp;utm_medium=referral\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Disclosure;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Disclosure<\/a><\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/nvidia-stock-nvda-still-long-184019579.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Artificial Intelligence (AI) prodigy Nvidia (NVDA), the world\u2019s third-highest-valued stock, experienced a material decline in market capitalization following its Q2 earnings in late August. However, NVDA stock has shown some &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=108412\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-108412","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/108412","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=108412"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/108412\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=108412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=108412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=108412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}