Are AMD and Intel threats to Nvidia? | Jessica Amir on 2GB

In the latest 2GB podcast, moomoo's Market Strategist Jessica Amir covered the potential investment opportunities following arising from Nvidia's recent stock split. She expressed optimism about Nvidia's future and explored whether AMD or Intel pose a threat to the company. Here are the key points of the interview.

Nvidia has recently surged to become the world's second-largest company, surpassing Apple. If shares increase by just 3%, it will beat out Microsoft and become the largest company in the world. Most analysts are bullish on the stock, foreseeing significant growth potential fueled by its expanding product pipeline and client base extending beyond IT and into healthcare. Jess also mentioned it is worth noting that we have not seen its major healthcare collaboration work hit its balance sheet yet.

Nvidia's dominance in the GPU market (90% share), and its strategic relationships with tech giants like Microsoft, Meta, Amazon, and Alphabet promise a strong revenue stream. Plus, Nvidia's forward-looking revenue growth is unmatched in the tech industry, projected to soar by 98% to $120.2 billion by 2025. Despite this promising outlook, its stock remains relatively inexpensive compared to the Nasdaq, offering investors an attractive opportunity.

Additionally, Nvidia's upcoming stock split on June 7th is poised to enhance liquidity and potentially drive further price appreciation. It also means its stock will go from trading at US$1,200 to US$120, which is the cheapest trading price for the first time in 3 years. Historically, stocks have performed well post-split, a trend likely to continue for Nvidia.

While some may cite competition from AMD and Intel as a concern, Jessica pointed out Nvidia's strong market share in AI chips and high revenue growth projections, signaling its resilience. Comparatively, AMD and Intel are expected to see revenue fall by -1% and -2% respectively. Earnings growth and forward earnings growth drive share price rises, which contribute to Nvidia's continued success.

Click the link to listen to the full podcast: Jessica Amir, Market Strategist, moomoo Australia (2gb.com)