From Forbes: 2024-06-06 18:03:00

NVIDIA, known for inventing the GPU in 1999, has recently become the world’s second most valuable company, worth over $3 trillion. Split into Graphics and Compute & Networking divisions, NVIDIA’s share price hit a record high of $1,224 on 5 June 2024. The company reported revenues of $26 billion, a 262% increase, and net income of $14.9 billion, a 628% increase, for the financial year 2025.

NVIDIA’s upcoming ’10 for 1 share split’ will make its shares more accessible to retail investors by lowering the price from over $1,000 to a tenth of that. Despite its success and dominance in the AI market, some analysts are skeptical of NVIDIA’s eye-watering valuations and predict lower rates of growth in the future. However, the company remains a key player in the AI industry and is expected to continue doubling revenues for the next few quarters.

As the AI sector experiences rapid growth and development, NVIDIA is well-positioned to benefit from increased investment in AI technology. The company has seen its share price rise by 140% since the beginning of 2024, with major investors increasing their exposure to sectors driven by AI. Analysts expect NVIDIA’s growth margins to remain significant in the medium and long term, as AI technologies become more integrated into everyday life.

NVIDIA’s early recognition of the transformative potential of AI has made it a leader in producing chips for complex AI tasks. The company’s position as a ‘picks and shovels’ provider in the AI industry allows it to benefit regardless of which AI solutions succeed or fail. While there are concerns about potential boom-and-bust cycles and market competition, NVIDIA’s current success in the AI market is unparalleled. Investors should consider the risks and uncertainties surrounding the company’s long-term performance.



Read more at Forbes: NVIDIA Stock Price Prediction – Forbes Advisor UK