Nvidia stock saw a recent 14% drop post-peak, but JPMorgan predicts growth in AI sector.

From Nasdaq: 2024-09-24 04:06:00

Nvidia’s stock price has surged nearly 700% since 2023 but has recently slipped 14% post-peak. Investor concerns around AI budget cuts and decreasing gross margins have impacted the stock. However, JPMorgan forecasts a 24% annual increase in AI infrastructure spending, indicating significant growth opportunities in the sector.

Nvidia holds a dominant market share in GPUs, with 98% of data center GPU shipments in 2023. Competitors like Intel and AMD have designed alternative AI chips, but Nvidia’s superior hardware and software ecosystem give it a competitive edge. Analysts at Morgan Stanley highlight Nvidia’s strong position against competing threats in the market.

Wall Street remains bullish on Nvidia, with a 94% buy rating among analysts. Median price target stands at $150, implying 29% upside potential. Earnings are expected to grow at a rate of 36% annually over the next three years, making the current valuation attractive. Investing in Nvidia could be a profitable opportunity for prospective investors.



Read more at Nasdaq: Nvidia Stock Investors Just Got Good News From Wall Street: The Artificial Intelligence (AI) Boom Is Thriving