Nvidia’s stock has experienced tremendous growth in recent years, with the company’s graphics processing units (GPUs) proving instrumental in powering artificial intelligence (AI) models. The company’s financial results have been staggering, with record-breaking revenue and profit growth.
In the second quarter of fiscal 2024, Nvidia delivered $13.5 billion in revenue, a 101% increase from last year. Its adjusted earnings per share (EPS) soared to $2.70, up 429%. The company’s momentum continued in subsequent quarters, with record-setting sales and profit growth.
Analysts remain bullish on Nvidia, with 94% of those who have offered an opinion rating the stock a buy or strong buy. The average price target is $157, suggesting the stock has upside of 11%. Many analysts have updated their models to increase their price targets, with some predicting even higher prices.
The upcoming release of Nvidia’s AI-centric Blackwell architecture is expected to drive future growth. Demand for the processors has been “insane,” according to CEO Jensen Huang. The company aims to ship several billion dollars in Blackwell revenue in the fourth quarter.
While some may be concerned about the stock’s valuation, considering its impressive five-year revenue growth of 868% and net income increase of 1,650%, it’s clear why Nvidia is deserving of a premium. As the AI revolution continues to gain momentum, Nvidia is well-positioned to continue its upward trajectory.
Investors can expect more volatility in the coming weeks and months, but for now, Nvidia’s strong financial results and bullish analyst sentiment suggest that the stock has much further to climb from here.
Source: https://www.fool.com/investing/2024/11/17/should-you-buy-nvidia-stock-before-nov-20-wall-str