Source: Ascannio / Shutterstock.com
Initially known for gaming hardware, Nvidia’s groundbreaking AI progress catapulted its stock by over 300% in recent years. This surge was fueled by the sustained high demand for top-notch chips and GPUs, an arena in which Nvidia reigns supreme.
While some foresee a slowdown post-rapid growth, the advent of Nvidia’s Blackwell AI chips could sustain its upward trajectory. Analysts like KeyBanc’s John Vinh envision further upswings, predicting NVDA stock hitting $1,200 amid robust demand for Nvidia’s Blackwell platform and other cutting-edge chips and GPUs.
If Nvidia maintains AI dominance and solid performance, projections hint at sales soaring to $300 billion by 2027. With its current upward trend, Nvidia’s shares might double or triple in the upcoming months. Wall Street projects Nvidia’s sales to reach $102 billion next year and $300 billion by 2027.
Lets scrutinize the achievability of these forecasts and gauge the long-term potential of this stock.
Unveiling the GeForce RTX 5090
Nvidia recently announced plans to launch the highly awaited next-gen GeForce RTX 50 series, featuring the RTX 5090 and RTX 5080 chips. These chips, accompanied by a 10% price hike, are expected to bolster Nvidia’s dominance in the AI GPU realm.
Anticipated by the fourth quarter of 2024, the RTX 50 series will rev up shipments for AIB partners, propelling higher average prices. Despite the unreleased price for the RTX 5090, its exceptional speed performance is poised to attract high-performance GPU users, potentially yielding more market share gains.
Venturing into Indonesia’s AI Scene
Nvidia recently teamed up with the Indonesian government and Indosat Ooredoo Hutchison to establish a $200 million AI center in Surakarta. Setiadi, the country’s communication minister, highlighted the center’s focus on telecommunications or human resources. Construction is set to kick off in 2024 to align with the region’s 5G infrastructure plans.
In January 2022, Nvidia committed to training over 20,000 university students and lecturers in AI skills under an agreement with the Indonesian government. The center aims to enhance Indonesia’s AI workforce, marking Nvidia’s expansion in Southeast Asia following a surge in demand for generative AI tools.
NVDA Stock: A Promising Long-Term Bet
Nvidia’s Blackwell platform is applauded as a tremendous leap in AI technology, garnering attention for its ambitious scope. In collaboration with Alphabet, Amazon, and Microsoft, Nvidia initiated programs to accelerate generative AI applications.
These partnerships fortify Nvidia’s already solid position, rooted in hardware and software excellence. I believe Nvidia stock has the potential to sustain its substantial lead over contenders in the long haul. As a potential decade-long investment, owning this stock at current levels seems like a wise move.
Cheyenne is a budding investor who realizes that cats have 32 muscles in each of their ears to help them pinpoint the source of a sound. She is constantly calculating the best investment moves while appreciating feline anatomy marvels.