Nvidia Stock Forecast: What to Expect in the Next 12 Months | Nvidia Stock | NVDA Stock

Nvidia Stock we're tracking Nvidia shares this morning nvda the ticker symbol up on your screen right there the shares are moving to the upside today after leading the declines in the Magnificent 7 yesterday Monday with those stocks shedding over $650 billion amid a steep Global sell off the Stock's volatile run over the last month here is leaving investors wondering if now is the time to buy let's bring in Patrick Morhead the founder and CEO of more insights and strategy joining us now here all right so Patrick I mean is now the time to if you're not already involved in some form or another in and have exposure to Nvidia is now the time listen giant sell-offs are always a huge opportunities for investors when I stand back and when I look at the PE Ratio it's reasonable when you consider uh the growth rates uh their midterm competitive uh position hasn't changed uh from from anything and uh when I look at Short Term there is a little bit of uh risk here uh with this potential uh Blackwell uh push which is uh the follow on to their their their H series but customers can still continue to buy the H series so even on the the shortterm risk I don't see a tremendous amount uh of of downside here so Patrick I'm curious on what you attribute just the volatility too it sounds like it's a bit of an overreaction it sounds like you think that any sort of hiccup here if we do see that in production is going to be more of a short-term blip was this just a stock just given the massive runup that we've seen was just primed in positioned here for this type of pullback and then therefore kind of going to your thesis of what you just said it maybe does present a buying opportunity then for investors yeah you nailed and I think I on one of your previous shows I even used the word hiccup I mean investors that this stock was so hot uh for so long that any type of Hiccup or or bad news could mean a selloff and you know you you add to what happened over in Japan and some other risks that that you know melted the entire Market um but but you have to stand you have to stand back and look at you know the overall short midterm and long and then align you know whatever investment strategy you have uh with those opportunities and risks I don't see anything changing in the data center for NVIDIA uh for the next uh 12 maybe even uh 18 months uh there is a little bit of short-term volatility until we understand what exactly is happening uh with Blackwell uh which by the way could be an opportunity for uh AMD short-term broadcom and maybe even uh marll to go in and and grab some share but that's that's a shortterm uh not a midterm uh and then longterm right it it's a a totally different conversation as of today Nvidia Stock Analysis nvidia's stock price has risen by 142% making it one of the best performing companies on the market over the past year however a closer examination of this semiconductor Giant's recent price movement indicates that its astounding surge may have finally come to an end on June 20 nvidia's shares reached a 52- we high but since then the stock has fallen by 22% there have been questions expressed concerning nvidia's exorbitant value and its capacity to maintain its startling expansion into the end of the following year analysts project that Nvidia will hold a 70% to 95% market share in AI data center Graphics processing units gpus this puts the business in a strong position to benefit from the long-term and short-term sustained demand for AI accelerators for example recent data from Advanced Micro Devices arrival of Nvidia suggests that the strong demand for AI chips isn't going away away in the second corter of 2024 AMT saw a phenomenal 115% year-over-year increase in its data center Revenue reaching $2.8 billion this remarkable growth according to the company was primarily driven by the Steep ramp of AMD Instinct GPU shipments which are AI accelerators used in data centers additionally it's important to remember that AMD sold just over $1 billion worth of mi3 I gpus in the most recent quarter AMD has revised its Nvidia vs AMD forecast for data center GPU sales in 2024 estimating to make $4.5 billion as opposed to $4 billion previously this is also a welcome increase above amd's January prediction of $3.5 billion for data center gpus this Challenger to Invidia is currently experiencing strong success however nvidia's progress does not end there in the data center GPU industry Nvidia is a far bigger player than AMD and is expanding at a far quicker rate in the first corner of fiscal 2025 Nvidia sold $ 22.6 billion worth of data center processors generating a staggering 427 per increase in Revenue year-over-year Nvidia recorded such amazing data center expansion for two reasons initially it is evident that the business holds a leading position in its industry second according to Market Research firm technavio the size of the AI chip industry is expanding at a strong yearly rate of 68% nvidia's company will likely continue to grow at a strong Pace in the future as the firm believes that the AI chip Market could Rise by $390 billion between 2023 and 2028 with all these developments under consideration and analyst predictions we'll talk about Target projections and advice in today's video so make sure not to miss out however before you do if you'd like to stay up toate on video's most recent updates and the most recent news from the stock market you can subscribe to our Channel we publish daily updates about the biggest shifts in Market catalysts so click the Bell icon button to ensure you don't miss the most recent updates all right back to today's video thoughts on Nvidia because people had the stock split and they got excited it was at 120 went up to 140 and you know now it's barely holding 100 here I think it's at 102 or something today tell me about Nvidia where do you think it's headed and how would you uh look at this one absolutely I think it's important to talk inidia due to it it's its large Mega cap and exposure that it has to the market but we've had earnings so far and the hypers skillers have told us that they're again increasing their capex spending that and who does that benefit that naturally benefits Nvidia a all AI points back to Nvidia at least in this early stages that we are you know there's concerns with the Blackwell chips delays that were announced yesterday but there's definitely stock gaps that Invidia has put in place there's even demand for their their Hopper chip but what's important about this Nvidia issue that we're assessing especially with Blackwell that's a supply side issue not a demand there's back orders that will eventually normalize so I I think that's very important to pay attention to and also out of all of the trades that I'm providing you today Nicole when there is downturn and there's Vol volatility from an options perspective that heightens premiums that is such a dream for an options Trader and yesterday I had one of the best trades that I've seen on Nvidia and adding it to your longer term portfolio Nvidia is a stock I I absolutely would own don't trade because of the high beta that it is but yesterday or even earlier today um if you sell an a the money cash secured put that's about 45 days out putting us in the September 20th expiration a money be around 100 you could collect $10 worth of Premium within 45 days that's 10% of Premium that I would make giving myself a $20 spread of of profit potential that's a rare opportunity yeah Timothy arcury an analyst at UBS projects that Nvidia may make $24 billion in Revenue in 2025 which will largely correspond with its fiscal year 2026 in contrast nvidia's revenue for the current fiscal year 2025 is predicted to reach $120 billion according to our cury nvidia's Revenue should increase by 70% in the upcoming fiscal year our's projection is predicated on the robust demand for nvidia's recently released AI chips the Blackwell generation the analyst notes that in order to house nvidia's Blackwell processors data center operators are putting large orders for liquid cooled server racks con consequently Nvidia may ship 69,000 Blackwell based systems for every 5,000 of these systems the company will make $9 billion in Revenue furthermore Nvidia Earnings nvidia's earnings per share could reach $4.95 in 20125 once more that is significantly more than the $3.74 per share average projection for the fiscal year 2026 which Falls within 11 months of the 2025 calendar year based on its forward earnings multiple of 43 which is lower than the 45 earnings multiple for the US technology sector Invidia stock price may rise to $161 next year assuming its fiscal 2026 earnings meet the consensus forast of $3.74 per share that would represent a 50% rise over existing levels however investors may be able to anticipate further growth from this Semiconductor Company if nvidia's earnings approach ury's prediction so what does this Please Like Subscribe really mean for nvidia's stock let's find out but first if you made it this far into the video thank you these videos take a lot of effort and time to make so if you enjoyed them please hit the like button subscribe to the channel this goes a long way in helping us grow that said back to the video AI remains Sponsor worth watching segment for Global Investors in 20124 but how do you keep up with the AI sector and others that you may interested in I recommend and trying Mumu a sponsor of today's video some features to discover stocks with investment potential has blown me away you can use the industry chain to find companies throughout the entire AI sector or use the stock screener to filter stocks according to your investment strategy having the option to set parameters like industry market indicators Financial indicators technical indicators and more ultimately discover potentially undervalued stocks and those that appear to show buy signals to help inform your strategies in an effort to capitalize 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the first one is this infrastructure anybody uh who is related to building out these massive uh data centers with gpus in them I I think are very I'm very confident next 12 to 18 months that's going to be the case and we saw the capital expenditure uh commit by Microsoft and meta and Amazon it is absolutely pedal to the metal on that and then there's the longer term Downstream right the enterprise software uh providers uh that that there has to be benefit uh in a large scale for all this to to interconnect because there is just factually an overinvestment in the capability versus the downstream benefits uh at this point and and if that gear doesn't connect in let's say 12 months what's going to happen is the investors uh of these enterprise software companies are going to be asking you know where's the benefit and have super pressure on these companies to start scaling back and that is when uh all bets uh are off and and the final thing I want to add is I I still think there's this untapped opportunity which is the AI PC and AI smartphones you know we saw a little bit on the AI smartphones related to Apple we saw a slight bump on that but when you consider there's only one generation of Apple smartphones that can do all the AI uh tricks out there and then uh people are going to have to buy new smartphones new tablets and even even new Mac that's really I think good news for companies like apple and wcom and and even AMD and Intel all right Patrick Morhead always great to get your Insight thanks so much for joining us here this morning founder and CEO of more insights and strategy because of this astute What You Should Do investors may want to take advantage of nvidia's retreat to purchase additional shares as the company may be poised for short-term strength given the enormous AI potential it possesses let's now discuss what you ought to accomplish regarding Nvidia it's crucial to keep an eye on your portfolio and equi over the long term even amid uncertain market conditions history demonstrates that all market conditions including Bull and bare markets and sell-offs are transient events although there are ups and downs the good news is that Market expansion has consistently prevailed over time the major indices have consistently experienced gains following difficult times this indicates that you should hold on to a player if they have the capacity to endure a challenging environment and if their long-term potential seem promising consequently Nvidia is a fantastic investment or hold right now furthermore if you want to purchase the shares will be available for a very fair 37 times forward earnings expectations which is a significant discount from nearly 50 times only a few weeks ago in the early phases of its development the AI Market in which Nvidia is a leader is seeing rapid growth analysts estimate that later this decade the 200 bill million dollar a business would grow to over $1 trillion Nvidia opt to gain from its leadership and emphasis on innovation in order to hold on to this position because of this Nvidia is a great stock to add to any long-term growth portfolio during this Market selloff with all of Conclusion these considerations Nvidia is unquestionably a great buy especially if you're looking to invest for the longterm because the company hasn't reached its full potential yet what do you think about Nvidia stock is it a good buy at the current price please share your opinions with us in the comments section and don't forget to let us know what you think Nvidia is worth if you're interested in learning what other companies like Nvidia have been up to lately click on the next video on your screen we'll see you there