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In today's video, I discuss recent updates impacting Nvidia (NVDA 0.68%). To learn more, check out the short video, consider subscribing, and click the special offer link below.
In 2024, semiconductor leaders Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor (NASDAQ:TSM ) saw incredible gains, as investors piled into chip stocks of all calibers, in the chase for AI-related gains.
Various investors will have bought Nvidia Corporation stock at different stages of the phenomenal rally over the past two years, hoping they are not too late to profit from the AI. The market is increasingly concerned over whether Nvidia's customers will see justifiable returns on investments, given the underwhelming monetization trends and the struggle of AI start-ups, creating risks for NVDA. However, shareholders should not make the mistake of selling the stock based on these concerns, given the latest industry findings and analogous research.
Nvidia Corporation's Q3 revenue soared to $35.1 billion, a 94% YoY growth, driven by AI adoption across sectors, reiterating my Strong Buy rating with a $200 target. Data Center segment generated $30.8 billion, growing 112% YoY, highlighting AI infrastructure demand and Nvidia's technological lead in accelerated computing and AI-generated software. Enterprise AI and sovereign computing markets are new growth vectors, with Nvidia's software segment nearing a $2 billion annual run rate and major partnerships accelerating adoption.
Nvidia (NVDA 0.90%) earnings have become quite the event for investors. Given the company's growth over the past two years, observers are curious about what each quarterly result will bring.
Nvidia Corporation's CEO Jensen Huang has confirmed strong medium- to long-term revenue growth, with potential to double or triple current revenues, reinforcing Nvidia's market leadership. Nvidia's strategic partnerships in India and other countries highlight its expanding AI infrastructure, driving sustained demand for its chips globally. TSM's commitment to doubling chip production capacity by 2025 and Foxconn's new factory in Mexico ensure robust supply to meet Nvidia's high demand.
With 2024 starting to wind down, it appears it is going to be a very good year for the stock market, with the S&P 500 up about 24% year to date as of this writing. Tech stocks, in particular, have had a good run, with many benefiting from the advent of artificial intelligence (AI).
NVIDIA Corporation investors suffered a late pullback last week even as NVDA surged to a new high. Post-earnings profit-taking likely occurred. Should investors be concerned? NVIDIA's magnificent beat-and-raise is expected to be a thing of the past, but that shouldn't deter bullish investors from adding on pullbacks.
While it's not clear what the exact impact on Nvidia might be, new tariffs would raise barriers to trade and would almost certainly cause problems for its supply chain.