Wall Street predicts 15% upside for Nvidia stock and 5% downside for Arm stock
From Nasdaq: 2024-10-17 04:34:00
Grand View Research predicts a 29% annual growth in AI chip sales through 2030. Semiconductor giants Nvidia and Arm Holdings dominate the market and have seen their stock prices surge. Wall Street analysts forecast opposite movements for the stocks, with a 15% upside for Nvidia and a 5% downside for Arm. Both companies are poised to benefit from the expansion of AI infrastructure, but investors must weigh their investment potential. Nvidia’s diverse offerings and leadership in the data center accelerator market position it as a strong player in the AI economy. The company reported impressive financial results and anticipates significant growth, making it an attractive stock for patient investors.
Arm Holdings, on the other hand, specializes in central processing unit architectures and licenses its IP to clients to develop custom chips for various applications. While the company has a dominant position in smartphone processors and is expanding in data centers and PCs, its valuation appears steep at 107 times adjusted earnings. Arm reported strong financial results in the first quarter of fiscal 2025, driven by the smartphone and cloud computing markets. Prospective investors may want to wait on the sidelines, and current shareholders should consider trimming their positions. The Motley Fool announces potential “Double Down” stock recommendations for companies on the brink of significant growth, highlighting missed opportunities to investors who didn’t act on past recommendations. Amazon, Apple, and Netflix are success stories from previous “Double Down” alerts, emphasizing the potential returns on timely investments.NASDAQ: NVDA, Arm, Alphabet, Amazon, Apple, Microsoft, and NVIDIA are mentioned as key players in the AI chip market, with the editor having positions in Amazon and Nvidia. The Motley Fool recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The views expressed belong to the author and not Nasdaq, Inc.
Read more at Nasdaq: Nvidia Stock vs. Arm Stock: Wall Street Says Buy One and Sell the Other