Nvidia (NASDAQ:NVDA) has no intention of taking its foot off the gas pedal. While the company’s Hopper chip remains in high demand, the AI chip giant is working hard to launch its next version, named after famous mathematician David Blackwell.
The Blackwell architecture initially faced yield, design, and production issues, but the company appears to have resolved these issues. Production of Blackwell GPUs is currently happening fast and furious, with nearly 13,000 units delivered to customers in the last quarter.
One top investor, known by the pseudonym Research Wise, expects Blackwell to help Nvidia remain front and center going forward.
“Blackwell is also starting to grow, and the company should experience significant volume growth in the coming quarters, leading to revenue expansion,” explains an investor in the top 4% of TipRanks Stock Pros. do.
Research Wise highlights that Blackwell’s enhanced features, including improved operating efficiency and energy savings, are actively attracting a wide range of customers.
“In my view, these cost-saving features of the company’s next-generation solutions, combined with the ability to accelerate business operations and automate workflows, will drive solid demand growth from enterprises and AI-based startups. “It should bring about that,” the investor opined.
Research Wise expects demand for more advanced AI and computing technologies to remain strong and believes there is ample demand for Nvidia’s GPU and technology solutions.
“We expect strong operating profit growth in the coming quarters due to expected sales volume growth, leading to earnings expansion in FY2025 and beyond, which should help improve the company’s valuation in the future,” Research Wise noted. I am doing it.
In that regard, Research Wise notes that NVDA is trading at a significantly higher multiple (46.64x forward P/E) than the sector median (25.42x) and peer groups AMD (36.56x) and AVGO (37.38x). is recognized. , QCOM (14.74x). However, the investor also notes that NVDA has outperformed its competitors while returning an impressive 20x over the past five years. In other words, Nvidia earned a premium.
Research Wise rates NVDA stock a Buy, concluding that current levels provide “ample opportunity to invest in this long-term compounding investment company.” (Click here to see Research Wise’s track record)
I don’t see much disagreement among Wall Street analysts. With 36 buy recommendations and 3 hold recommendations, NVDA stock sports a “Strong Buy” consensus rating. Their 12-month average price target of $176.86 implies ~21% upside over the next 12 months. (See NVDA stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
