Nvidia, the leading technology company known for its AI chips, continues to dominate the market and achieve record-breaking highs. With its unstoppable winning streak, Nvidia has been driving the AI-themed rally and consistently delivering impressive earnings reports. Year-to-date, Nvidia shares have surged by 66%, reaching an all-time high of approximately $820.
According to Ivan Feinseth, a highly regarded analyst at Tigress Financial, Nvidia’s winning streak is far from over. Feinseth believes that Nvidia remains at the forefront of the ongoing acceleration and tipping point of AI adoption across all industries and enterprises. This continued growth is expected to drive significant revenue, cash flow growth, and greater shareholder value creation. Feinseth rates Nvidia shares as a Buy and has raised his price target from $790 to $985, suggesting a potential growth of around 20% over the coming year.
At the heart of Nvidia’s success lies its Data Center segment, which is home to its best-in-class AI chips. In the recent report for the January quarter, the segment’s revenue surged by an impressive 409% year-over-year, reaching a record $18.4 billion. Nvidia’s collaborations with industry giants like Google and Amazon have played a significant role in this success. The partnership with Google has led to enhancements across Nvidia’s data center and PC AI platforms for Gemma, Google’s open language model. Additionally, Nvidia has expanded its strategic partnership with Amazon’s AWS by hosting NVIDIA DGX Cloud on AWS. In the healthcare sector, Nvidia is extending its presence by collaborating with Amgen to advance insights in drug discovery, diagnostics, and consumer medicine.
While the Data Center segment has taken the spotlight, there has also been a recovery for Nvidia’s Gaming segment. In the latest report, Gaming revenue surged by 56% year-over-year, reaching $2.9 billion. This growth can be attributed to the introduction of the GeForce RTX 40 SUPER Series GPUs, enabled by the latest NVIDIA RTX technology. Nvidia has also unveiled microservices for the NVIDIA Avatar Cloud Engine, allowing game and app developers to incorporate cutting-edge generative AI models into non-playable characters. The number of AI-powered RTX games and applications utilizing NVIDIA DLSS, ray tracing, and other NVIDIA RTX technologies has now exceeded 500.
Overall, Feinseth believes that Nvidia should be a core holding in the AI investment theme and one of the best ways to play the accelerating adoption of AI into all types of technologies and applications. This sentiment is echoed by 37 other analysts on Wall Street, resulting in a Strong Buy consensus rating for Nvidia. With an average price target of $886.52, it is expected that shares will be changing hands for approximately an 8% premium in a year’s time.
It is important to note that the opinions expressed in this article are solely those of the featured analyst. Investors are advised to conduct their own analysis before making any investment decisions.
In conclusion, Nvidia’s unstoppable winning streak continues as it dominates the AI market and achieves record highs. With its Data Center segment driving significant revenue growth and collaborations with industry leaders, Nvidia is well-positioned for continued success. Additionally, the recovery of the Gaming segment further contributes to Nvidia’s overall strength. Analysts remain bullish on Nvidia’s future prospects, making it a top choice for investors looking to capitalize on the accelerating adoption of AI technology.
