Biggam, “Even assuming the high price target of $165 per share for Nvidia is correct, that is only 11% upside for NVDA stock from the $149 level. Not only that, the estimate spectrum ranges from $165 at the top to $44 at the bottom. Needless to say, at the current market value, we are well above forecast, to the tune of nearly 18%. Contrarian investors are now worried, particularly because shares have nowhere to run.Īnother InvestorPlace colleague, Tim Biggam, reports that The Wall Street Journal pegs the consensus price forecast for Nvidia at $125.
When you deposit $100, we’ll add an additional $100 to your account.Why Nvidia Corporation (NVDA) Stock Is Still a Long-Term Contenderīut seriously, how much more can Nvidia put out?Īs InvestorPlace executive editor Jeff Reeves notes, NVDA stock nearly tripled in price. It means investors can get the best of the tech sector, while having a hedge fund-like reaction to any market news or information that might arise.ĭownload Q.ai today for access to AI-powered investment strategies. Each week, we use AI to find the optimal mix between these verticals, and then select the stocks and ETFs within each of them. This AI-powered Investment Kit invests across four verticals in the sector, namely tech ETFs, large tech companies, small to mid sized tech companies and crypto. In order to seek the best risk adjusted returns in tech, we created the Emerging Tech Kit. Many areas in the industry have seen phenomenal returns, and it’s now home to the biggest companies in the world.Īs this recent situation has highlighted, it doesn’t mean it’s all smooth sailing. The tech sector can be a very important one for investors. It highlights the importance of diversification and how different market sectors can be impacted at any time. This is a sizable percentage of Nvidia’s overall business, but it’s not likely to be enough to cause major long term problems. While the reduction in sales of $400 million is a significant figure, it represents just 6.8% of the company's expected quarterly revenue.
Long term, this isn’t likely to have a significant impact on the prospects for Nvidia, one of the largest chip makers in the world. It was down 6.5% in extended trading on Wednesday, and in the pre-market on Thursday has fallen an additional 4.3% at time of writing. What do the new chip restrictions mean for investors?įor investors in Nvidia, it definitely means some short term pain, as the stock has crashed off the back of the news. When you deposit $100, we’ll add an additional $100 to your account. Nvidia has applied for an exemption to the new regulations, but currently there has been no indication on whether the government will be prepared to relax the rules.ĭownload Q.ai today for access to AI-powered investment strategies. Rival chip-maker AMD also announced similar restrictions to one of their chips, the MI250 artificial intelligence circuit, however this is not a major seller for the company and they don’t expect it to move the needle on their revenue. The new restrictions will also apply to Russia, but Nvidia do not currently have any Russia-based clients and therefore won’t see an impact on their business. Analysts were expecting this figure to jump again to $15.9 billion in 2022, ahead of this announcement. While they are most well known for their gaming chips, the data center business has grown strongly, with revenue increasing from $6.7 billion in 2020 to $10.9 billion in 2021. The chips in question are mainly found in data-centers, which has been a growing component of Nvidia's business.
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