Stockchase Research Editor: Michael O'Reilly NVDA has been a stock on the rise and analysts have raised price expectations to $540 as they see a bright future in 5G and work-from-home technologies. The company also have profitable divisions in gaming and data centers usage. A new gaming chip is set for release August 21, just after earnings announcement on the 19th. We would not chase after this, but rather would look to buy into short term weakness if it comes, down at support of $430. Yield 0.13%.
Semiconductors are the basic building block of today's economy. We are headed into 5G networks. 25% of their business is data center, growing at 50% per year. 50% of their business is gaming (teenage kids at home). The rest is graphic design and they have the technology in these spaces. They may get slowed down a bit during COVID, so if you can get it lower, great. (Analysts’ price target is $307.29)
There is a lot more gaming going on and then there are the data centers. With people working from home there will be a better upgrade cycle with personal computers. These guys should do well because of the data center side.
The darling with AI. They have gotten into quantitative computing as well. They just reported and earnings looked good. It is at the top end of his valuation target of $277 per share. He owns this and will look to buy on weakness.
AI advacements? He likes DELL products. The stock does not have the greatest balance sheet however. He likes AI, but there are other device manufacturers that are better situated like NVDA, who is also well placed for gaming.
A GPU manufacturer. He struggles with their valuation metrics. They have good tailwinds and there will be more investment in data centres, machine learning and AI. They have exposure in gaming as well, where e-sports are growing.
Breakout? Their earnings were extremely good. Data centres, gaming and other areas exceeded expectations. His target is $315 -- it is getting a little expensive here. It is prone to movements down with the market. He wouldn't sell, but he would look for places to buy.
They dominate graphics processor. Bi markets are videogames which amount to 50% of their revenues + gaming 25% + cloud 25%. AI is 5%, but they're a leader there, and 5% in self-driving which is emerging. This sector pays great margins. (Analysts’ price target is $255.76)
It had a really ugly 18 months. Management were very clear in their guidance. The fundamental story around AI still remains. It is a good company but there is a caution around semiconductors. Buy them when they are broken. For now, let it run and see what happens.
A chip company that benefits from the move towards AI. Chip stocks have fallen off in the last year, but they are starting to recover. One of the best companies in the field. It's expensive but it is best in class that you can put new capital into.
The poster child for the space. They are into gaming, new lighting technology and they have exposure into autonomous vehicles. They are also entering into machine learning -- algorithms processing growing patterns.
NVIDIA Corporation is a American stock, trading under the symbol NVDA (previously NVDA-Q on Stockchase) on the NASDAQ (NVDA). It is usually referred to as NASDAQ:NVDA or NVDA
Is NVIDIA Corporation a buy or a sell?
104 expert ratings on NVIDIA Corporation (NVDA) in the last 12 months: 90 Buy, 5 Hold, 9 Sell. Latest rating: BUY on WEAKNESS by The Panic-Proof Portfolio (Stockchase Research) on Aug 18, 2020. Read the latest stock experts' ratings for NVIDIA Corporation.
Is NVIDIA Corporation a good investment or a top pick?