Will NVIDIA Stock Reach $1000?

Nvidia Corporation is a technology company known for designing and manufacturing graphics processing units (GPUs). The company was founded in 1993 and is headquartered in Santa Clara, Calif.

Will NVIDIA Stock Reach $1000? Read on

Will NVIDIA Stock Reach $1000: Latest news

• Nvidia CEO Jensen Huang has sold another chunk of Nvidia shares, bringing his total sales in the last few days to $120 million. This is his fourth sell in the last few days. After his recent sales, Jensen Huang still owns over 2% of the company.
• Oracle Cloud Infrastructure (OCI) offers NVIDIA GPU-accelerated compute instances. These instances are powered by NVIDIA GPUs and are designed for demanding workloads such as machine learning, artificial intelligence, and high-performance computing.
• Vietnamese Prime Minister Pham Minh Chinh has urged Nvidia to invest in Vietnam and make the country its manufacturing hub in Southeast Asia. Chinh made the request during a working trip to Silicon Valley where he met with Nvidia CEO Jensen Huang.
• Nvidia’s next-gen Blackwell GPUs could be chipset-based. This would be a significant change for Nvidia, as its current GPUs are monolithic dies.
• Nvidia GeForce RTX 5090 will be 1.7x faster than the RTX 4090. This would be a significant performance improvement and would make the RTX 5090 the fastest graphics card on the market. The rumors suggest that the RTX 5090 will have a number of improvements over the RTX 4090, including:
  • More cores
  • Higher clock speeds
  • Faster memory
  • More cache
• Moody National Bank Trust Division has increased its stake in NVIDIA Co. by 0.7% during the second quarter, according to a recent filing with the Securities and Exchange Commission. The firm purchased an additional 333 NVIDIA shares bringing their total ownership to 47,084 shares. NVIDIA now constitutes 1.4% of Moody National Bank Trust Division’s portfolio, making it its sixth-largest holding.
• Nvidia sold 900 tons of H100 GPUs last quarter, according to analyst firm Omdia. The H100 GPU is Nvidia’s latest and most powerful HPC GPU. It is designed for use in a wide range of applications, including artificial intelligence (AI), machine learning, and scientific computing. The H100 GPU is also used in data centers and cloud computing environments.

NVIDIA Price Targets: Analysts

NVIDIA Stock Forecast for the Next 12 Months	$625
Truist Securities	$668
RL Baird	$750
KeyBanc	$670
BofA	$650
Wolfe Research	$630

Q2 Earnings Summary

• Revenue:
  • Total revenue of $13.51 billion, an increase of 101% from the previous year and 88% from Q1.
  • Data Center revenue stood at a record $10.32 billion, marking a 171% increase from the previous year and 141% from Q1.
• Earnings:
  • GAAP operating income surged by 218% QoQ and 1,263% YoY.
  • Non-GAAP operating income rose by 155% QoQ and 487% YoY.
  • GAAP earnings per diluted share: $2.48, up 854% YoY and 202% QoQ.
  • Non-GAAP earnings per diluted share: $2.70, up 429% YoY and 148% QoQ.
• Highlights from Various Segments:
  • Data Center: Record revenue, new product announcements including the NVIDIA GH200 Grace Hopper Superchip, NVIDIA L40S GPU, and partnerships with companies like ServiceNow, VMware, and SoftBank for AI initiatives.
  • Gaming: Revenue of $2.49 billion, the release of the GeForce RTX 4060 GPUs, and the introduction of NVIDIA Avatar Cloud Engine for Games.
  • Professional Visualization: Revenue of $379 million, with new RTX GPUs based on the Ada Lovelace architecture announced.
  • Automotive: Revenue of $253 million, featuring partnerships and product integrations like NVIDIA DRIVE Orin in the XPENG G6 Coupe SUV.
• Shareholder Returns: NVIDIA returned $3.38 billion to shareholders through 7.5 million shares repurchased for $3.28 billion and cash dividends. The company has $3.95 billion remaining for share repurchases, with an additional $25 billion approved by the Board of Directors.
• Upcoming Dividend: NVIDIA will distribute a quarterly cash dividend of $0.04 per share on September 28, 2023.
• Outlook for Q3:
  • Expected revenue of $16.00 billion (±2%).
  • Gross margins are projected at 71.5% (GAAP) and 72.5% (non-GAAP), with a variance of 50 basis points.
  • Estimated operating expenses are around $2.95 billion (GAAP) and $2.00 billion (non-GAAP).
• CEO Statement: Jensen Huang, NVIDIA’s CEO, emphasized the onset of a new computing era with a shift towards accelerated computing and generative AI. He highlighted the company’s GPUs, Mellanox networking, and CUDA AI software stack as the backbone for this computing infrastructure.

Will NVIDIA Stock Reach $1000? Factors In Favor

Nvidia’s Dominance in the GPU Market

Nvidia holds a commanding position in the GPU market, boasting a remarkable market share exceeding 70%. Its GPUs find applications across diverse sectors, including gaming, data centers, and autonomous vehicles. Renowned for their exceptional performance and energy efficiency, Nvidia GPUs are particularly well-suited for AI-driven tasks.

Pioneering Role in the AI Landscape

The burgeoning AI market presents ample opportunities, of which Nvidia is primed to reap substantial benefits. The utilization of Nvidia GPUs spans a broad spectrum of AI applications, encompassing natural language processing, image recognition, and machine learning. Concurrently, Nvidia’s substantial investments in AI research and development solidify its standing within the evolving AI landscape.

Diversified Market Expansion

Although Nvidia is known for graphics cards and video games, growth is likely to come from data center solutions. Businesses worldwide were already moving data into the cloud before the Covid-19 pandemic, but the pace increased multifold post-pandemic. As more and more businesses opt for cloud storage, this industry is not going to get smaller. Plus, while GPU is the main forte for Nvidia, it also specializes in handling complex workloads like AI. Nvidia is already disrupting Intel’s data center turf by producing data processing units (DPU) that can handle such complex workloads.

Apart from this the company’s strategic focus on designing chips and software for self-driving cars and the metaverse—a virtual realm built atop the internet—exemplifies its multifaceted approach to market expansion.

Nvidia has another fast-growing segment named personal Visualization. Personal Visualization will enable Nvidia to become a key player in Metaverse, and Metaverse represents a multitrillion-dollar opportunity over the long run. Omniverse is Nvidia’s answer to Metaverse. According to reports, Nvidia will take a $1000 license fee per user to use Omniverse, and there are expected to be around 40 million designers worldwide using Omniverse soon.

Robust Financial Performance

Nvidia’s track record of consistent profitability is underscored by rapid revenue and earnings growth in recent years. Its sound financial footing, bolstered by a strong balance sheet and healthy cash flow, empowers the company to make strategic investments that drive sustained growth.

Cultivating a Culture of Innovation

At the core of Nvidia’s success lies a vibrant culture of innovation. The company’s ceaseless drive to create novel products and technologies is propelled by a dedicated workforce renowned for its innovative mindset.

Will NVIDIA Stock Reach $1000: Factors Against

Non-exposure to Russian and Chinese Market

The US government in September 2022 ordered an immediate halt of sales of specific chips and data center systems to China capable of handling advanced artificial intelligence (AI) workloads. National and International Security are given prime reasons for this move.

Added to it NVIDIA will not be exporting A100 and H100 integrated circuits to China, Hong Kong, and Russia. Moreover, the rules are applicable for any future chips with the same or more excellent capability compared to A100.

This restriction directly affects the revenue of Nvidia.

Expensive

Nvidia is one of the prominent growth stocks trading at high valuation metrics, and that somewhat explains the sell-off in Nvidia in 2022. Investors are wary of high-growth stocks when the Fed continuously increases interest rates, and anticipated recession is glooming over the world.

Growing Competition

With the booming chip industry, the competition has also grown. NVIDIA faces huge competition from companies like Cisco. Juniper. Arista Networks. Dell Technologies. Extreme Networks. Huawei. VMware. Therefore, for NVIDIA to survive it will have to be the best.

Will NVIDIA Stock Reach $1000?

With the massive AI-driven boom, NVDA is likely to reach $1000 much earlier than our original forecast. NVDA is likely to report revenue that is 3 times higher than 2022.

Read: Will Lyft stock reach $100?

Conclusion: Will NVIDIA Stock Reach $1000?

For Nvidia, the requirement of a license for sale in China and Russia acted as the last nail in the coffin. However, The opportunities in the form of data centers and Metaverse are knocking at doorsteps, and Nvidia is all prepared to welcome them. Therefore, despite the restriction in sales, NVIDIA’s stock price could reach $1000 in the coming years.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.