Nvidia stock soars spectacularly thanks to surging AI demand
Ahead of its Q3 FY'24 earnings release on November 21, analysts are predicting strong results for Nvidia, with earnings expected to reach US$3.10 per share on revenue of US$14.89 billion. This represents a significant increase from the same quarter last year when Nvidia reported earnings of 58 cents per share on revenue of US$5.93 billion.
Nvidia's stock gains have far outpaced the broader market, with the company's shares up nearly 240% year-to-date compared to the S&P 500 index's 17% rise. Over the past one and three years, Nvidia's stock has surged by 210% and 265%, respectively.
The driving force behind Nvidia's phenomenal growth lies in the robust demand for its AI accelerators, particularly in the data center sector, where revenue has tripled year-over-year. Analysts foresee sustained growth for Nvidia, indicating a consensus price target of US$580, translating to potential gains of almost 20% from its current value of US$493.
According to the Bloomberg Billionaires Index, Jensen Huang's net worth has increased from US$13.8 billion to US$43.5 billion as Nvidia's success has helped him become one of the world's wealthiest people.
Nvidia's early entry into the generative AI market has given it a competitive edge over rivals that are still in the development stage. As AI adoption accelerates, Nvidia is well-positioned to capitalize on this trend and deliver exceptional returns for its shareholders.
Nvidia is also a leading producer of graphics cards. This GeForce RTX 4060 is now included in the Black Friday deal on Amazon.
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