{"id":59398,"date":"2024-04-18T06:00:58","date_gmt":"2024-04-18T10:00:58","guid":{"rendered":"https:\/\/www.ino.com\/blog\/?p=59398"},"modified":"2024-04-18T17:33:06","modified_gmt":"2024-04-18T21:33:06","slug":"how-investors-can-seize-opportunities-in-nvda-amid-market-volatility","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/","title":{"rendered":"How Investors Can Seize Opportunities in NVDA Amid Market Volatility"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to Todd Gordon, the founder of Inside Edge Capital, <\/span><a href=\"https:\/\/quotes.ino.com\/charting\/?s=NASDAQ_NVDA\"><span style=\"font-weight: 400;\">NVIDIA Corporation (NVDA)<\/span><\/a><span style=\"font-weight: 400;\"> is a <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/04\/12\/nvidia-is-a-buy-on-the-pullback-and-headed-toward-a-1150-target-according-to-chart-analyst.html\"><span style=\"font-weight: 400;\">strong buy despite a recent pullback<\/span><\/a><span style=\"font-weight: 400;\">. The chart analyst also set a target price of $1,150 for the stock.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cI say that NVDA is just resting its legs gearing up for another move, but this time it's bringing more friends along for the run. There are quite a few different names in the semi-industry setup in a similar fashion telling me that once again the chips are ready to rip,\u201d Gordon said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, on March 13, Bank of America maintained its buy rating on NVDA and <\/span><a href=\"https:\/\/markets.businessinsider.com\/news\/stocks\/nvidia-stock-price-outlook-ai-woodstock-1100-price-target-valuation-2024-3\"><span style=\"font-weight: 400;\">raised its price target from $925 to $1,100<\/span><\/a><span style=\"font-weight: 400;\">. As per BofA analyst Vivek Arya, Nvidia is expected to dominate the $90 billion accelerator market in 2024, unaffected by Google\u2019s new CPU launch.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last month, CNBC\u2019s Jim Cramer suggested investors welcome an impending pullback. \u201cI think people are right to expect a pullback here,\u201d Cramer <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/03\/27\/jim-cramer-says-investors-should-welcome-a-pullback-not-fear-it.html\"><span style=\"font-weight: 400;\">said<\/span><\/a><span style=\"font-weight: 400;\">. \u201cBut that\u2019s not a reason to head for the hills. Instead, you want to raise a little cash, watch the market broaden \u2014 as it is doing \u2014 and then buy your favorite tech stocks when they come down.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In Particular, Cramer said there may be an attractive opportunity to invest in one of his favorite stocks, NVDA. He hinted at his continued support for the tech giant over the years, even when the stock witnessed significant losses. While some on Wall Street might be growing weary of AI, Cramer emphasized that the future \u201cruns on Nvidia.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf you don\u2019t own Nvidia already, you know what? You\u2019re about to get a sale,\u201d he stated. \u201cAnd if you do own it already, just stick with it, because it\u2019s way too hard to swap out and then swap back in at the right level.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shares of NVDA have surged more than 75% year-to-date and nearly 223% over the past year. However, the stock has plunged around 3% over the past month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, let\u2019s discuss in detail factors that could influence NVDA\u2019s performance in the near term:<\/span><\/p>\n<p><b>Fourth-Quarter Beat on Revenue and Earnings<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The chip giant reported fourth-quarter 2024 earnings that beat analysts\u2019 expectations. For the quarter that ended January 28, 2024, NVDA\u2019s <\/span><a href=\"https:\/\/investor.nvidia.com\/news\/press-release-details\/2024\/NVIDIA-Announces-Financial-Results-for-Fourth-Quarter-and-Fiscal-2024\/#a__text_For_20fiscal_202024_2C_20revenue_20was_have_20hit_20the_20tipping_20point_\"><span style=\"font-weight: 400;\">non-GAAP revenue came in at $22.10 billion<\/span><\/a><span style=\"font-weight: 400;\">, surpassing analysts\u2019 estimate of $20.55 billion. This compared to revenue of $6.05 billion in the same quarter of 2022.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company posted a record revenue from the Data Center segment of $18.4 billion, up 409% from the year-ago value. NVIDIA achieved significant progress in this business segment. In collaboration with Google, NVDA launched <\/span><a href=\"https:\/\/blogs.nvidia.com\/blog\/google-gemma-llm-rtx-ai-pc\/\"><span style=\"font-weight: 400;\">optimizations across its data center and PC AI platforms for Gemma<\/span><\/a><span style=\"font-weight: 400;\">, Google\u2019s groundbreaking open language models.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, the company expanded its <\/span><a href=\"https:\/\/nvidianews.nvidia.com\/news\/aws-nvidia-strategic-collaboration-for-generative-ai\"><span style=\"font-weight: 400;\">partnership with Amazon Web Services (AWS)<\/span><\/a><span style=\"font-weight: 400;\"> to host NVIDIA<\/span><span style=\"font-weight: 400;\">\u00ae<\/span><span style=\"font-weight: 400;\"> DGX\u2122 Cloud on AWS.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regarding technological innovations, NVIDIA introduced several groundbreaking solutions, including <\/span><a href=\"https:\/\/nvidianews.nvidia.com\/news\/nemo-retriever-generative-ai-microservice\"><span style=\"font-weight: 400;\">NVIDIA NeMo\u2122 Retriever<\/span><\/a><span style=\"font-weight: 400;\">. It is a generative AI microservice that enables enterprises to connect custom large language models with enterprise data, delivering highly accurate responses for various AI applications.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, NVIDIA launched <\/span><a href=\"https:\/\/blogs.nvidia.com\/blog\/monai-cloud-apis-rsna\/\"><span style=\"font-weight: 400;\">NVIDIA MONAI\u2122 cloud APIs<\/span><\/a><span style=\"font-weight: 400;\">, facilitating the seamless integration of AI into medical-imaging offerings for developers and platform providers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s Gaming revenue for the quarter was $2.90 billion, up 56% year-over-year. Talking about recent developments in the Gaming division, NVIDIA launched <\/span><a href=\"https:\/\/nvidianews.nvidia.com\/news\/geforce-rtx-40-super-series\"><span style=\"font-weight: 400;\">GeForce RTX\u2122 40 SUPER Series GPUs<\/span><\/a><span style=\"font-weight: 400;\">, starting at $599, featuring advanced RTX\u2122 technologies such as DLSS 3.5 Ray Reconstruction and NVIDIA Reflex for enhanced gaming experiences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company also introduced <\/span><a href=\"https:\/\/nvidianews.nvidia.com\/news\/ace-avatar-cloud-engine-microservices\"><span style=\"font-weight: 400;\">microservices for the NVIDIA Avatar Cloud Engine<\/span><\/a><span style=\"font-weight: 400;\">, enabling game and application developers to integrate state-of-the-art generative AI models into non-playable characters, enhancing immersion and interactivity in virtual worlds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">NVIDIA\u2019s non-GAAP operating income increased 563.2% year-over-year to $14.75 billion. Also, the company\u2019s non-GAAP net income grew 490.6% from the previous year\u2019s period to $12.84 billion. It reported non-GAAP earnings per share of $5.16, compared to the consensus estimate of $4.63, and up 486% year-over-year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, the company\u2019s non-GAAP free cash flow was $11.22 billion, an increase of 546.1% from the previous year\u2019s quarter. Its total current assets stood at $44.35 billion as of January 28, 2024, compared to $23.07 billion as of January 29, 2023.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">During a call with analysts, Nvidia CEO Jensen Huang addressed investor concerns regarding the company's ability to sustain its current growth or sales levels throughout the year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cFundamentally, the conditions are excellent for continued growth\u201d in 2025 and beyond, Huang told analysts. He added that the continued demand for the company\u2019s GPUs would persist, driven by the adoption of generative AI and an industry-wide shift from central processors to Nvidia's accelerators.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the first quarter of fiscal 2025, NVIDIA expects revenue of $24 billion. The company\u2019s non-GAAP gross margin is expected to be 77%.<\/span><\/p>\n<p><b>Recent Announcement of AI Chips During Nvidia GTC AI Conference<\/b><\/p>\n<p><span style=\"font-weight: 400;\">NVDA announced a new generation of AI chips and software tailored for running AI models during its developer's conference at SAP Center on March 18 in San Jose, California. This announcement underscores the chipmaker\u2019s efforts to solidify its position as the go-to supplier for AI companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new generation of AI graphics processors is <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/03\/18\/nvidia-announces-gb200-blackwell-ai-chip-launching-later-this-year.html\"><span style=\"font-weight: 400;\">named Blackwell<\/span><\/a><span style=\"font-weight: 400;\">. The first Blackwell chip is the GB200 and is anticipated to ship later this year. It will also be available as an entire server called the GB200 NVLink 2, combining 72 Blackwell GPUs and other Nvidia parts designed to train AI models. NVIDIA is enticing customers by offering more powerful chips to spur new orders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The announcement comes as companies and software makers still scramble to get their hands on the current \u201cHopper\u201d H100s and similar chips.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cHopper is fantastic, but we need bigger GPUs,\u201d Nvidia CEO Jensen Huang said at the company\u2019s developer conference.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, the tech giant unveiled revenue-generating software called NIM, which stands for Nvidia Inference Microservices, to its Nvidia enterprise software subscription. NIM simplifies using older Nvidia GPUs for inference or running AI software and will enable companies to leverage the hundreds of millions of Nvidia GPUs they already own.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Nvidia executives, the company is transitioning from primarily being a mercenary chip provider to becoming more of a platform provider, like <\/span><a href=\"https:\/\/quotes.ino.com\/search\/?s=NASDAQ_MSFT\"><span style=\"font-weight: 400;\">Microsoft Corporation (MSFT)<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/quotes.ino.com\/search\/?s=NASDAQ_AAPL\"><span style=\"font-weight: 400;\">Apple Inc. (AAPL)<\/span><\/a><span style=\"font-weight: 400;\">, on which other firms can build software.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Analysts at Goldman Sachs retained a buy rating of NVDA stock and raised their price target to $1,000 from $875. They <\/span><a href=\"https:\/\/www.cnbc.com\/2024\/03\/19\/nvidia-stock-dips-after-company-unveils-latest-ai-chips.html\"><span style=\"font-weight: 400;\">expressed \u201crenewed appreciation\u201d for Nvidia\u2019s innovation<\/span><\/a><span style=\"font-weight: 400;\">, customer and partner relationships, and vital role in the generative AI space after the company\u2019s keynote.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cBased on our recent industry conversations, we expect Blackwell to be the fastest ramping product in Nvidia\u2019s history,\u201d the analysts said. \u201cNvidia has played (and will continue to play) an instrumental role in democratizing AI across many industry verticals.\u201d<\/span><\/p>\n<p><b>Bottom Line<\/b><\/p>\n<p><span style=\"font-weight: 400;\">NVDA surpassed Wall Street\u2019s estimates for earnings and sales in the fourth quarter of fiscal 2023. The chipmaker has significantly benefited from the recent technology industry obsession with large AI models, which are developed on its pricey graphics processors for servers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, sales reported in the company\u2019s Data Center business comprise most of its revenue. NVDA\u2019s Data Center platform is driven by diverse drivers like demand for data processing, training and inference from large cloud-service providers, GPU-specialized ones, enterprise software, and consumer internet companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, vertical industries, led by automotive, financial services, and healthcare, are now at a multibillion-dollar level.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data center GPU market is projected to be worth more than $63 billion by 2028, <\/span><a href=\"https:\/\/www.marketsandmarkets.com\/Market-Reports\/data-center-gpu-market-18997435.html\"><span style=\"font-weight: 400;\">growing at a staggering CAGR of 34.6%<\/span><\/a><span style=\"font-weight: 400;\"> during the forecast period (2024-2028). The increasing adoption of data center GPUs in enterprises should bode well for NVDA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Analysts expect NVDA\u2019s revenue and EPS for the fiscal 2025 first quarter (ending April 2024) to increase 237.7% and 405.9% year-over-year to $24.29 billion and $5.51, respectively. Moreover, the company has topped consensus revenue and EPS estimates in all four trailing quarters, which is remarkable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, for the fiscal year ending January 2025, the company\u2019s revenue and EPS are expected to grow 83% and 92.1% from the prior year to $111.49 billion and $24.89, respectively.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">NVDA has achieved significant progress across its business divisions, and this year, it will bring new product cycles with exceptional innovations to help boost its industry forward.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the AI boom began in late 2022, catalyzed by OpenAI\u2019s ChatGPT, Nvidia\u2019s stock has been up fivefold, and its total sales have more than tripled. The company\u2019s high-end server GPUs are essential for training and deploying large AI models. Notably, tech companies like MSFT and <\/span><a href=\"https:\/\/quotes.ino.com\/search\/?s=NASDAQ_META\"><span style=\"font-weight: 400;\">Meta Platforms, Inc. (META)<\/span><\/a><span style=\"font-weight: 400;\"> have spent billions of dollars buying these chips.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recently, the chipmaker announced a new generation of AI chips and software for running AI models, giving customers another reason to stick to Nvidia chips over a <\/span><a href=\"https:\/\/www.cnbc.com\/2023\/12\/07\/amd-stock-spikes-after-company-launches-ai-chip-to-rival-nvidia.html\"><span style=\"font-weight: 400;\">growing field of competitors<\/span><\/a><span style=\"font-weight: 400;\">, including <\/span><a href=\"https:\/\/quotes.ino.com\/search\/?s=NASDAQ_AMD\"><span style=\"font-weight: 400;\">Advanced Micro Devices, Inc. (AMD)<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/quotes.ino.com\/search\/?s=NASDAQ_INTC\"><span style=\"font-weight: 400;\">Intel Corporation (INTC)<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While NVDA\u2019s stock has declined nearly 3% over the past month, several analysts affirmed their bullish sentiment toward the stock and see a significant upside potential, owing to its booming AI business and new innovative launches to maintain its leading position in the face of rising competition.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Given these factors, investors could consider buying NVDA for potential gains.<\/span><\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>According to Todd Gordon, the founder of Inside Edge Capital, NVIDIA Corporation (NVDA) is a strong buy despite a recent pullback. The chart analyst also set a target price of $1,150 for the stock. \u201cI say that NVDA is just resting its legs gearing up for another move, but this time it's bringing more friends [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":58826,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[32695,32228,9516,33990,33993,33989,33988,32229,32092,31686,32091,33992,32033,33991,33998,31933,33994,33995,33997,33996,33999,32433,34000],"class_list":["post-59398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-32695","tag-advanced-micro-devices","tag-apple-inc-aapl","tag-expressed-renewed-appreciation-for-nvidias-innovation","tag-geforce-rtx-40-super-series-gpus","tag-growing-at-a-staggering-cagr-of-34-6","tag-growing-field-of-competitors","tag-inc-amd","tag-inc-meta","tag-intel-corporation-intc","tag-meta-platforms","tag-microservices-for-the-nvidia-avatar-cloud-engine","tag-microsoft-corporation-msft","tag-named-blackwell","tag-non-gaap-revenue-came-in-at-22-10-billion","tag-nvidia-corporation-nvda","tag-nvidia-monai-cloud-apis","tag-nvidia-nemo-retriever","tag-optimizations-across-its-data-center-and-pc-ai-platforms-for-gemma","tag-partnership-with-amazon-web-services-aws","tag-raised-its-price-target-from-925-to-1","tag-said","tag-strong-buy-despite-a-recent-pullback"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Investors Can Seize Opportunities in NVDA Amid Market Volatility - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Investors Can Seize Opportunities in NVDA Amid Market Volatility - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"According to Todd Gordon, the founder of Inside Edge Capital, NVIDIA Corporation (NVDA) is a strong buy despite a recent pullback. The chart analyst also set a target price of $1,150 for the stock. \u201cI say that NVDA is just resting its legs gearing up for another move, but this time it&#039;s bringing more friends [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/\" \/>\n<meta property=\"og:site_name\" content=\"INO.com Trader&#039;s Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/inocom\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-18T10:00:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-18T21:33:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ino.com\/blog\/wp-content\/uploads\/2023\/08\/Untitled-design-49.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"The INO.com Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"The INO.com Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/\"},\"author\":{\"name\":\"The INO.com Team\",\"@id\":\"https:\/\/www.ino.com\/blog\/#\/schema\/person\/d86a8cce826b7bd105200d88bb28a280\"},\"headline\":\"How Investors Can Seize Opportunities in NVDA Amid Market Volatility\",\"datePublished\":\"2024-04-18T10:00:58+00:00\",\"dateModified\":\"2024-04-18T21:33:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/\"},\"wordCount\":1489,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.ino.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.ino.com\/blog\/2024\/04\/how-investors-can-seize-opportunities-in-nvda-amid-market-volatility\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/wwwtest.ino.com\/blog\/wp-content\/uploads\/2023\/08\/Untitled-design-49.png\",\"keywords\":[\"100\",\"Advanced Micro Devices\",\"Apple Inc. 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