From Nasdaq, Inc.:

The S&P 500 Index had an impressive 2023, logging its longest winning streak since 2004 with 9 consecutive weekly gains and a 24% overall increase. The technology, communication services, consumer discretionary, and industrials sectors were the main drivers, with the top 10 stocks with Nvidia leading at 239%. Wall Street analysts consensus is a buy rating with Nvidia being highlighted as the top pick for investors in 2024, with a median 12-month price target of $650 per share.

Nvidia continues to lead the industry in artificial intelligence with their dominance in machine learning and data center accelerators, capturing 80-95% of the market. Their recent launch of DGX Cloud provides access to AI technologies, making AI development and deployment across various industries more accessible. In the third quarter, the company reported record-breaking revenue and sales across its core segments: data center, gaming, professional visualization, and automotive.

While Nvidia stock is currently at a reasonable price, it is well-positioned for growth as AI becomes more integrated into everyday life. With a forecasted annual earnings growth of 42% over the next three to five years, their current valuation of 63 times earnings is justified. While a risky investment, patient investors may consider buying a small position with the expectation of long-term shareholder value.

The Motley Fool’s Stock Advisor team did not identify Nvidia as one of the 10 best stocks for investors to buy right now. However, the service provides investors with a blueprint for success and has outperformed the S&P 500 since 2002. It reports that Randi Zuckerberg has positions in Amazon, Microsoft, Nvidia, Palo Alto Networks, Tesla, and Uber, and that the Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Meta Platforms, Microsoft, Nvidia, Palo Alto Networks, Tesla, and Uber. The author’s views expressed herein are their own and not necessarily those of Nasdaq, Inc.



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