Nvidia stock fell due to potential AI chip delays but expected to rebound with new GPUs.

From Nasdaq: 2024-09-20 05:29:00

Nvidia stock surged 150% in 2024 but fell due to potential AI chip delays. However, new Blackwell GPUs offer faster processing, reducing energy consumption by half. Demand exceeds supply, as top customers like Microsoft and Amazon invest billions in AI infrastructure. Nvidia stock appears undervalued based on future earnings, potentially reaching new highs by year-end.

Nvidia CEO Jensen Huang predicts substantial revenue from Blackwell GPUs. Data center operators could earn $5 for every $1 spent on GPUs by renting computing power. The world’s largest cloud providers and tech companies are increasing GPU orders for AI development. Demand surpasses supply, leading to tight market conditions and revenue growth potential.

Investors expect Nvidia stock to rebound based on upcoming fiscal year earnings. Wall Street projects $4.02 earnings per share for fiscal 2026, resulting in a forward P/E ratio of 28.7. Major customers like Microsoft, Oracle, and Meta Platforms plan to increase AI capex spending, reducing uncertainty surrounding Nvidia’s financial results. Stock Advisor recommends other stocks for potential returns.

Consider investing in Nvidia stock for potential returns, but explore other opportunities. Stock Advisor identified Nvidia as a top performer in 2005, but there are other stocks with significant growth potential. The service offers guidance on building a portfolio and regular updates from analysts. The views and opinions expressed belong to the author and do not necessarily reflect those of Nasdaq, Inc.



Read more at Nasdaq: Prediction: Nvidia Stock Is Going to Soar in the Remainder of 2024