$NVIDIA (NVDA.US)$ **NVIDIA Corp. (August 23, 2024) ** - **...
**NVIDIA Corp. (August 23, 2024) **
- **Target Price/Base Case**: $150.00 |**Evaluation**: Excellent
### Key Takeaways:
1. **Next financial announcement**: We believe NVIDIA shares should be purchased in preparation for the financial results announcement for the fiscal year ending 2024/7. Hyperscale capital investment is seen as an indicator of strong demand, with a 20% increase in the second quarter, and quarterly growth of 8% and 10% in the third and fourth quarters, respectively.
2. **NEXT CYCLE: LONG-TERM STRENGTH**: NVIDIA has experienced two 50% or more adjustments in its recent history, and we don't think there will be significant selling pressure from NVIDIA until mid-2025, especially since we forecast peak capital investment in the fourth quarter of 2024.
3. **Concerns about Blackwell**: We are aware of investors' concerns about potential delays in NVIDIA's next-generation GPU “Blackwell,” but similar to past product disruptions, there may be an impact of 5% to 10% in the short term, but NVIDIA has responded quickly with alternative solutions, and we believe demand is very strong.
4. **Early stages of the AI investment cycle**: Comments from hyperscale companies show evidence that AI is generating revenue, and the risk of underinvesting in AI today is expected to far outweigh the risk of overinvesting in AI at this early stage of the AI investment cycle.
5. **Undiscovered growth factors for companies and Tier 2-3 CSP**: Comments from CSCO and Lenovo suggest that inventory adjustments are over, and there is evidence that demand for AI is coming from companies. Demand from businesses and Tier 2-3 CSPs feels underestimated by the streets.
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This content is an analysis of NVIDIA's stock price and future growth prospects.
- **Target Price/Base Case**: $150.00 |**Evaluation**: Excellent
### Key Takeaways:
1. **Next financial announcement**: We believe NVIDIA shares should be purchased in preparation for the financial results announcement for the fiscal year ending 2024/7. Hyperscale capital investment is seen as an indicator of strong demand, with a 20% increase in the second quarter, and quarterly growth of 8% and 10% in the third and fourth quarters, respectively.
2. **NEXT CYCLE: LONG-TERM STRENGTH**: NVIDIA has experienced two 50% or more adjustments in its recent history, and we don't think there will be significant selling pressure from NVIDIA until mid-2025, especially since we forecast peak capital investment in the fourth quarter of 2024.
3. **Concerns about Blackwell**: We are aware of investors' concerns about potential delays in NVIDIA's next-generation GPU “Blackwell,” but similar to past product disruptions, there may be an impact of 5% to 10% in the short term, but NVIDIA has responded quickly with alternative solutions, and we believe demand is very strong.
4. **Early stages of the AI investment cycle**: Comments from hyperscale companies show evidence that AI is generating revenue, and the risk of underinvesting in AI today is expected to far outweigh the risk of overinvesting in AI at this early stage of the AI investment cycle.
5. **Undiscovered growth factors for companies and Tier 2-3 CSP**: Comments from CSCO and Lenovo suggest that inventory adjustments are over, and there is evidence that demand for AI is coming from companies. Demand from businesses and Tier 2-3 CSPs feels underestimated by the streets.
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This content is an analysis of NVIDIA's stock price and future growth prospects.
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Jamaica no problem : Thank you KIMIHIKO for your valuable information