Why did Nvidia stock jump today? Wells Fargo sings the meta-verse
$NVIDIA(NVDA.US$stock finished the day 12% higher, after rising through the afternoon to soar through the $300/share barrier and touching an all-time high of $313.64 (which marked an 18% gain at that time from yesterday's close).
Why? The stock was jumping from the open (even its lowest trade today was 2% higher) after a Wells Fargo note touted an upcoming product expansion and sharply hiked a price target to expect yet another 8% upside.
Nvidia launched an open beta last December of its Omniverse platform, an open virtual platform allowing creators to collaborate in real time on physically accurate simulations or 3D renderings. And Wells Fargo notes that next week at GTC 2021, the company is expected to officially launch general availability for Omniverse Enterprise, a subscription product starting at $9,000/year.
The bank figures the "metaverse" concept that $Meta Platforms(FB.US$has been talking so much about actually offers a $10 billion incremental market opportunity for Nvidia in the coming five years. The company's Omniverse plays a role there, but it also expects Nvidia to benefit materially from the "significant compute needed to power the Metaverse; with AI assisted design and parallel computing at the forefront."
Nvidia mentions have also been on the rise on moomoo, an imperfect but interesting measure of how retail buyers are joining in on the more typical institutional frenzy.
With about $745 billion in market cap, Nvidia has moved to become the seventh-biggest member of the S&P 500. It's up 28% over the past month, up 79% in six months and has more than doubled year-to-date:
The move up today marked Nvidia's sixth straight session of gains.
Nvidia is set to report earnings in a couple of weeks, with consensus expectations for EPS of $1.08 (which would mark 48%-plus growth) on revenues of $6.81 billion (44% growth).
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Kieron Morley : I said earlier this year , it would go to 1000 by September, it did better by November and went to 1200...Who wouldn't love Nvidia !!!
carririlin : Analysts believe that the platform can provide strong hardware support for "Meta Universe" customers including Facebook
Brandon Golden : Stock is pricing in revenue & growth for the next 3-4 years so it either is gonna consolidate for that time or it’s coming down the moment the market corrects a few percent
Brain Gomes : The metaverse needs content. Without content, it's as empty as a pop-up mega city in China full of unoccupied skyscrapers. NVDA will no doubt do well providing metaverse hardware and hardware-related software to support it. But content is king. And the king of metaverse content is Unity. Unity is to metaverse content what HTML was to Internet content 25 years ago. Unity provides the system, tools, and recurring revenue distribution platform to the content creators of the metaverse, most of whom currently make their living in games content creation, which Unity also dominates. It will be a 10-bagger imo.
John Dow : I am out... too high too fast. Made a killing with NVDA but now best to stay out.
I will continue adding to ETFs and mutual funds that have a sustained portion of NVDA, but stand-alone Nvida, no sir. Too many people forgot the 2018 correction.. Now, if we have another one I might buy hand over fist again!
wild horse : Bought more today…
NVDA, what a run this year as interest rates continue to fall..haha !
Inflation doesn’t matter to this market…it has been nothing but noise ….
Buy the dips….
Rebecca Augustine : Don't forget that even Super Micro Computer does Nvidia's GPU cards for gaming and crypto. Nvidia contracts SMCI.
Harper lee Rebecca Augustine : Super Micro are simply a channel partner like Asus, MSI or Boxx. What do you mean by "contracts?"
Qgilbert : Nicee