Nvidia stock may double in value again over the next 5 years with strong demand and innovation

From Nasdaq: 2024-04-15 04:20:00

Nvidia stock has doubled in value over the past seven months, but another 100% return in the next seven months seems unlikely. To double again within five years, the demand for Nvidia’s GPUs driven by AI growth must exceed estimates, while the company must out-innovate competitors.

One key factor is the law of supply and demand. The demand for Nvidia’s GPUs is projected to increase due to the rise in the global AI chip market. Despite competition from rivals like AMD and Intel, Nvidia’s innovation and market dominance can still lead to stock growth.

The biggest obstacle to Nvidia’s doubling chances in the next five years is its current valuation, which may be inflated. NYU finance professor Aswath Damodaran has a lower fair value estimate for Nvidia stock. However, if demand surpasses expectations and innovation remains strong, stock growth is possible.

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Read more at Nasdaq: Here’s Exactly What It Will Take for Nvidia Stock to Double Again Over the Next 5 Years