2 Reasons to Buy Nvidia After the Stock Split (and 1 Reason to Sell)

From Nasdaq: 2024-06-16 10:36:00

Stock splits can make stocks seem more affordable but don’t change the company’s value. Nvidia’s market cap is $3.2 trillion. Despite competition, Nvidia dominates the AI hardware space with a market share of over 80%. Consistent growth and software solutions make Nvidia stock attractive to investors.

Analysts predict the AI industry could be worth $1.3 trillion by 2032, benefiting Nvidia. The company plans to release new AI chips yearly and has a competitive advantage through CUDA software. Despite a 3000% increase in the last five years, Nvidia stock remains reasonably valued compared to peers like AMD.

Nvidia’s role in AI today mirrors Cisco Systems’ internet hardware role in the late 1990s. While Nvidia has significant growth potential, investors should be wary of a potential valuation collapse. Before investing in Nvidia, consider expert analysis, future growth prospects, and potential risks in the market.



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