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Nvidia stock has tripled in the past year but is still one of the cheapest ways to invest in AI, analyst says

Jan 17, 2024 - markets.businessinsider.com
Nvidia's stock is expected to continue to rise, according to Bernstein senior analyst Stacy Rasgon. Despite high valuations, Rasgon maintains a price target of $700 for Nvidia, citing the growing artificial intelligence trend as a key driver of the company's performance. He also noted that Nvidia's earnings have significantly outpaced the rise of its stock, making it an attractive investment.

Rasgon highlighted that Nvidia is cheaper than other semiconductor firms, despite its massive earnings. The company's last earnings report showed a record revenue of $14.51 billion in the third quarter, a 279% gain from the same quarter in the prior year. The company's stock has climbed 223% through 2023, largely driven by developments in AI and the launch of new products like the Grace Hopper super chip and an upgrade to its H200 GPU.

Key takeaways:

  • Nvidia's stock is expected to continue rising, according to Bernstein senior analyst Stacy Rasgon, who holds a price target of $700 for the company.
  • The company's earnings are outpacing the rise of its stock, making Nvidia's multiples highly attractive.
  • Nvidia's semiconductors, often used to create the infrastructure used by emerging AI technology, have given the company a massive boost.
  • Rasgon highlighted the launch of new products, such as the Grace Hopper super chip and a coming upgrade to its H200 GPU, as factors that will keep Nvidia on top.
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