Nvidia stock has surged with stellar earnings, dominating the AI industry, offering potential upside.

From Nasdaq: 2024-05-24 15:30:00

Nvidia reported stellar earnings with revenue up 18% from the prior quarter and 262% YoY, while net income surged 628% YoY. The company continues to dominate the AI industry, providing GPUs to tech giants. At $1,045 per share, the stock may still offer upside. Investors can also consider Alphabet and Arista Networks for AI exposure.

Nvidia’s stock has surged nearly 4x in the past year, but earnings have outpaced that growth. Margins have expanded from 18.5% to 54.3%, highlighting improved business fundamentals. With strong earnings growth, the stock may deserve an even richer earnings multiple.

Earnings estimates for Nvidia have been steadily climbing, leading to a Zacks Rank #1 (Strong Buy) rating for the stock. Analysts expect sales to increase by 77.6% this year and 20.5% next year. Despite the stock’s rally, there could still be room for more upside.

Investors hesitant to buy Nvidia stock can explore other options for AI exposure. Alphabet, with its AI integration plans and discounted valuation, is a top pick. Arista Networks, a key player in networking infrastructure for AI workloads, has also seen steady growth and could offer investment opportunities in the AI space.



Read more at Nasdaq: Nvidia Stock: Cheaper than it Was a Year Ago