Nvidia Stock: Why Analysts Say It's a Must-Buy Right Now | Nvidia Stock | NVDA Stock | NVDA

anticipate the market reaction to that looking like because we have seen Nvidia come out in the past and beat and raise and the market has not necessarily rallied around that news because the anticipation is so baked in I would say with a pullback in the stock to around1 $100 I think a beat and a raise assuming that it's pretty solid um should be should be adequate you know if you think about nvidia's valuation at these levels we think they're going to do you know over five bucks in change next year you're trading at 20 times which is um you know puts puts Nvidia almost into kind of value stock range relative to the broader semiconductor Market which is kind of trading at kind of mid mid to high 20s right now so John there's lots to like it sounds like about Nvidia what would you tell investors is the most compelling Second Source play on AI um we like Monolithic Power uh they're derivative play on envidia they Supply uh Power Management Solutions to the majority of nvidia's uh CPU Solutions uh in the Next gener Generation Blackwell uh they're also going to gain uh significant amounts of content the asps are going to go up 40% and then they're also gaining share at at other providers they're also now supplying power to 's gpus and later this year we think they're also going to gain share at uh on Google's tpus what do you look at to indicate that thesis John because and and I asked because I was going to ask you about your call on Micron you did trim your price Target uh and and you noted a couple of reasons why particularly given the demand for the data center piece there but what is the one thing that investors should take a look at when they are determining the long-term potential gains of an AI play yeah I would say kind of barriers to entry you know I think uh when you think about Nvidia it's obviously got a significant Advantage Advantage from a soft remote perspective with Cuda um and also just their their competitiveness if you look at Next Generation black ball solution particularly the gb200 uh this is not an incremental performance uh Improvement that you typically get when a when a Semiconductor Company releases their next Generation chip this is a pretty transformational release where they're moving from a chip based solution to a full stack server W Solutions where there's going to be potentially a 20 to 30X uh performance Improvement so I think that's kind of what you're going to be focusing on when you look at AI plays is will they be able to continue to kind of uh push the envelope in terms of improving their um performance leadership so then John where does that leave some of those other secondary plays when you take a look at AMD some stocks that have been on a volatile run here over the last several months some of that negative moves that we had been seeing leading up to the last couple of weeks to the downside was that a bit overdone and do you see significant room to the upside um I do I do I think uh we still U like AMD quite a bit um I think when Nvidia first released their gb200 uh platform I think there were some concerns out there of whether anyone else in the marketplace can compete and keep up with with Nvidia I I would say a couple things right obviously the the delay the potential delay with blackwall potentially gives um AMD a little bit more breathing room and in the history of Technology we have never seen um somebody have a kind of a monopolistic position it's just not sustainable the market forces will not allow it we think AMD has a competitive uh solution in mi 300X you know we think they're going to do uh $6 billion in revenues this year which is obviously very small compared to what Nvidia is going to do but it's uh it's notable all right John Vin great to get your Insight here thanks so much for breaking down some of the recent moves that we've been seeing within the chip bace equity research analyst at KeyBank Capital markets thanks so much Tuesday saw a nearly 6% increase in Nvidia shares after Goldman Sachs strategist Scott rubner dubbed at the most significant stock of the Year based on the chipmaker earnings later in the month and the Federal Reserves Jackson hle economic Symposium rubner projected a market rally when viia releases its earnings on August 28th the strategist anticipates a post-market move driven by the company's results which may potentially signal the technical bottom for the largest index weights and AI Darlings before a September surve urge according to rner there may be a short-term window of opportunity to purchase the dip as technical pressure eases and the market may be ready for a Labor Day bounce but before celebrating fresh highs in the fourth quarter the strategist at Goldman Soxs cautioned that investors would encounter a tricky second half of September in front of the US presidential election Tuesday's 6.5% gain in Vidia shares to $16.14 helped the company make up for recent losses the Stock's worth has more than doubled since the year's beginning thanks to Tuesday's advances after a significant worldwide sell-off that rattled the markets last week due to concerns of a recession investors are still wary Tech values should be kept in check in the upcoming weeks by analyst cautions about the extremely high Capital expenditures of tech businesses and the lack of site over returns in an interview with CNBC last month elevation partners Roger mcnam cited a Goldman Sachs analysis that suggested investors expectations for Returns on AI Investments could not be met ASA ogoshi of JP Morgan Asset Management told blueberg that there will likely be a adjustment for tech stocks since she anticipates that the rise focused on AI will expand to other Industries when asked if she intended to cut back on her exposure to AI stocks in the near future the analyst replied that she would be more selective in her AI bets and would raise the caliber of the stocks in the portfolio Nvidia Corp is one of the tech stocks offering a compelling buy the dip opportunity according to a recent report from bof a concerns over valuation are causing Vidia Corp shares to drop Morgan Stanley however added the stock back to its list of top choices according to analyst Joseph Moore so what does this 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 set back to the video and I'm curious something that you just mentioned a moment ago and that was the fact that you're not too worried about the reports of Blackwell delays I guess I'm curious as to why why is it that you see that as a limited setback at this point so yeah just to put a bit of context you know the blackw is achieved at designed with uh Coos L you know it's it's a packaging technology by tsmc um that uh is being used in in Blackwell that's different from what was used in uh in Hopper where was Coos s and so that involves like high density local silicon interconnects and redistribution layers to improve the die to die interconnect density so that the two dies can speak to each other very very quickly very very fast um and so the the integration of these components into the substrate has resulted in in issues like thermal mismatch and warpage but reality is that Blackwell is a Cutting Edge chip it's pushing the boundaries of packaging um and it was brought Market very very rapidly by Nvidia you know Nvidia is accelerating its product Cadence so inherently there were risks of delay um but that being said we we still expect you know Nvidia and tsmc to bring blackw to Market with acceptable yield and volume in 2025 and in the near term Nvidia can mitigate the situation in many ways they can extend the life of Hooper um they can release a single die black well chip uh and so yes maybe the shipments will be more weighted towards hopper in the second half of 2024 and and early 2025 um but we still sense enormous and Urgent demand across the board and that mitigates the risk of opposing shipment as customers wait for the next generation of of chips to be available in volume on the other hand others are worried about in ind's future growth trajectory in light of the most recent major Tech earnings alphabet and meta platforms two of the company's biggest clients have hinted that they might be overspending and overbuilding AI processors Based on data from 2023 Nvidia Corp is selling roughly 2 million of its gpus annually the company won't be able to maintain its current growth trajectory as competitors increase their supply and demand moderates based on a moving average convergence SL diver indicator Raymond James analyst jav Mirza recently stated in a report that nvda has triggered a mechanical cell signal he said in a technical analysis report that the stock is showing early indications of selling pressure and is trading below its 50-day moving average this indicates that a correction period lasting 1 to 3 months is imminent according to Mirza he went on to say that a sustained break below the 50-day moving average may cause prices to fall to 94.9 94 or 16.9% below current levels in its key to investor letter patient Capital opportunity Equity strategy made the following statements about Nvidia Nvidia remained a top performer During the period gaining 36.7% and led both the market and the portfolio leading the industry in both GPU design and sales envidia has recently profited from the unquenchable need for artificial intelligence AI m with a 92% market share in data center gpus The Firm has had remarkable growth in revenue profitability and free cash flow or FCF over the past year with increases of 126% 392 and 610 respectively even though we anticipate more competition We Believe nvda can hold on to its leading market share although many are worried about the reduction in in backlog times we believe that additional shortages will arise later this year with the introduction of the B 100 which offers 2.5x better performance for only 25% more money being well positioned for the growing adoption of artificial intelligence AI is the company's cuttingedge technology growing Innovation cycle and robust CER monkeys article titled 11 trending AI stocks on latest news and analyst ratings Nvidia is ranked number one overall although we are aware of nidia's potential we are more certain that AI equities have a better chance of yielding larger returns in a shorter amount of time despite us sanctions huai Technologies is getting close to releasing the asend 910c a new AI chip that will compete with Nvidia The Wall Street Journal set on Tuesday according to the journal which cited persons with knowledge of the situation Chinese it companies have been testing the chip which fui is is alleged to have disclosed to prospective customers Rivals nvidia's h100 a chip that is not readily available in China H's advancements highlight the company's capacity to get above obstacles set by the United States supported by significant State assistance but according to the wsg there could be a restriction on access to essential parts for AI gear due to production delays and possible new restrictions from the US as you can see Nvidia is Making Waves in the tech world and analysts are confident that now is the time to invest whether you're looking to diversify your portfolio or capitalize on a growth opportunity Nvidia could be the stock that takes your Investments to the next level if you found this analysis helpful don't forget to like share and subscribe to our Channel investing tutorial for more expert insights and tips to help you navigate the world of investing stay tuned for more content that can help you make smarter financial decisions