Nvidia's stock surges 170% in 2024, leading to a 10-for-1 split

From Nasdaq: 2024-07-13 18:50:00

Investors are eyeing Nvidia as a lucrative opportunity in the booming artificial intelligence industry. The stock has surged over 170% in 2024, driven by big tech investments in AI chips and data center services. Nvidia’s dominance in the market has propelled its stock to new heights, leading to a 10-for-1 stock split last month.

While Nvidia’s GPUs are widely used by tech giants like Meta Platforms and Tesla, the company’s software platform CUDA is proving to be a profitable venture. Nvidia aims to build an end-to-end AI ecosystem encompassing both hardware and software, positioning itself for continued growth in the competitive chip market. Despite potential margin pressures from competitors, Nvidia’s diverse revenue streams provide a cushion.

Despite Nvidia’s soaring stock price, the company’s P/E and P/FCF multiples have decreased over the past year, making the stock technically less expensive. With investments in AI start-ups and robotics, Nvidia offers long-term investors exposure to various sectors of the AI industry. While Nvidia may face challenges in the chip space, its diversified growth opportunities make it a compelling investment option.

The Motley Fool Stock Advisor team recommends 10 stocks for investors, excluding Nvidia. However, historical data shows immense potential for growth with early investments. With strategic guidance, regular updates, and new stock picks, the Stock Advisor service has outperformed the S&P 500 since 2002. Consider the long-term benefits of investing in Nvidia and other promising stocks for significant returns.



Read more at Nasdaq: Is It Too Late to Buy Nvidia Stock After Its 10-for-1 Split?