Nvidia and Meta Platforms show strong growth potential in AI workloads and digital advertising

From Nasdaq: 2024-09-22 04:20:00

1. Nvidia, trading on the NASDAQ under the symbol NVDA, has seen a 161% surge in share price over the last year due to soaring demand for its GPUs for AI workloads. The stock’s forward P/E is low at 28, hinting at potential growth as Wall Street estimates show a 40% boost in earnings next year.

2. Meta Platforms, a NASDAQ-listed company under META, has benefited from the increasing digital advertising market. The stock is up 80% over the past year and has attractive forward P/E of 22 based on next year’s earnings estimate. Analysts project an annualized 17% growth in earnings, supporting potential future gains.

3. Despite a recent setback with the delay of its new Blackwell computing platform, Nvidia anticipates robust demand in the data center sector for AI workloads, including model training and inferencing. The company expects revenue from Blackwell to commence in Q4, contributing to its growth potential in various sectors like healthcare and advertising.

4. Meta Platforms continues to grow its digital advertising revenue with the help of its AI infrastructure investments. The company introduced Llama, a large language model, to enhance user experiences, leading to a 22% year-over-year revenue increase in Q2. With $49 billion in free cash flow, Meta is well-positioned to invest in advanced AI technologies for future growth.



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