NVIDIA Stock Set to Soar: Citi's Bold New 52-Week High Prediction | Nvidia Stock | NVDA Stock | NVDA

we still have to consider Nvidia a week from today how do you see that I mean it's huge obviously um it's uh it's the most important stock in the world right now so U you know if if they laid an egg uh it would be a major problem for the whole Market I don't think they will I think uh they're going to surprise the upside if you look ahead at at sort of what Wall Street is is counting on on a go forward basis it's almost like this explosion of of AI r that they've seen over the last year and a half um you know is going to just sort of dry up and I just don't think that's the case uh Eric Schmid uh gave a a talk at Stanford recently it was sort of leaked a few days ago and they had to they took it down off of YouTube because he made some critical comments about the work culture of Google but embedded within that talk one of his throwaway lines was you know in talking to Sam Alman they they said that together they both believe that each of the hyperscalers uh plus the open AIS of the world were probably going to have to spend something like $300 billion in Nvidia chips over the next few years each 300 billion each so you know Nvidia could basically only Supply those hyperscalers uh and their order book is going to be full for the next four years it like it's a massive staggering amount of money that's sitting in front of them and you know God Lov the broadcom and the you know the amds of the world but you know that the vast vast majority like more than 95% of that revenue is going to go to Nidia well I mean how do you you just talked about I mean obviously the money that Nvidia makes is the money that the hyperscalers are spending so at what point do you look at what the hyperscalers are spending and say you know what it might be a little longer for the ROI or the return on invested Capital side of of the story then I think we're willing to admit how should we look at that well I think that the I mean the meta is showing now that they are making a lot of money from this uh and that's why their stock is is you know mid you know mid 500s right now uh so they you know I'm starting to think that Zuckerberg was sort of leading us on several years ago when he was sing saying that he was spending all this money on reality labs and and and and people panicked and sold the stock down to 80 bucks I I kind of think he was trying to throw off his competitors by just spending all this money on Nvidia gpus so he could get a head start of them so he's he's showing the way now if you're sitting in the seat of Andy jasse you know or Microsoft or open AI are you going to let you know another one of these competitors just you know take the lead and become the the dominant you know player in AI going forward I just don't think you can do that and you're only spending a you know a minority uh in some cases uh or just you know certainly less than your annual free cash flow that that these these companies are generating so you're not going to spend that money just like leaving it on the balance sheet and you're not going to spend it on m&a because L con's not going to have any anything to do with that so you know I I I think it was it was Eric Schmidt in that in that same talk that said you know a lot of these people look at the investment in AI as like what's what's the return on investment on intelligence like they see it as a lot of them infinite I mean there are going to be some shocking applications that are going to come out over these next few years I've seen some already that just make the hair stand on the back of my neck Scott so I know everybody's impatient to see the the applications but they they are here in some cases and they will be coming shortly we're still less than two years away from from chat gpt's debut I got you city retained its bullish position on Nvidia Corporation retaining its $150 price Target and buy rating the analyst for the company estimated that nvidia's data center sales and total for the July quarter would be about $24.8 billion and $28.5 billion respectively in line with estimates although this amount is less than the $2 billion beat seen in the preceding four quarters an upside of about $1 billion to the Street's projections is anticipated this cautious assessment is explained by remarks made about the supply chain and worries about Blackwell GPU delays City projects nvidia's total sales for the October quarter to be $ 31.9 billion marginally higher than the the streets projected $31.5 billion based on remarks from peers the company estimates that potential sales might reach between $32 billion and $33 billion investor attention is anticipated to be focused on multiple important areas as Nvidia gets ready to release its earnings report following the Market's closure on August 28th the ramifications of sovereign Ai and the possibility of further restrictions on Next Generation gpus in China are among them as is the demand for the h100 and h200 models in the second half of 2024 updates on networking Supply delays and the momentum of ethernet Spectrum X Enterprise demand in the context of rising AI agents and the impact of probable Blackwell GPU delays on the January quarter and calendar year 2025 City believes that during the June and October quarters the streets expectations would probably rise Additionally the company anticipates that remarks made regarding Blackwell will reassure investors about nvidia's optimistic forecast for 2025 City projects that Nvidia stock may hit a new 52- we high in response to these events the analysts analysis emphasizes that nvidia's performance and possible Market trajectory are expected to improve if you want to keep up with nvidia's latest updates and keep up with the stock market latest news you can subscribe to our investing tutorial Channel as we post daily updates about the biggest changes and Catalyst in the markets so click the Subscribe button if you don't want to miss the newest Market updates now back to today's video well investors are clearly going to be on the lookout for earnings from Invidia the chipmaker that has gotten the line chare of the market attention this year is set to report results next week that could provide some further Clarity on all the AI demand that was consuming the market earlier this year Nvidia shares have bounced off their lows but certainly that theme it's helped the likes of Microsoft and meta and all these companies that are spending a lot on AI right now but broadly speaking we've started to see some cracks in the chip sector the semiconductor index the socks that gets tracked very closely on Wall Street has had uh a challenging time over the last month Nick MCH is an associate portfolio manager purpose Investments and joins us with a deeper dive into the technology sector Nick great to have you with us what are you thinking about first of all on like a company like Nvidia I would imagine there's going to be like three days of buildup like a Taylor Swift concert or something like that next week but what's your general Sense on on that company as it pertains to this whole AI spending boom right now yeah absolutely and I think he kind of hit the nail on the head in terms of Jed s Wayan kind of has a lineup similar to a Taylor Swift concert when it comes to sort of the hype around this stock and I think if you look at the market right now and if you want to pick one stock stock that is the market right now Nvidia is the number one most monetizable company in the hottest area of the market and there's two really important things to watch for for NVIDIA so the first is the revenue forecast going forward because a lot of the implied valuation uh really does bake in the future growth expectations of this company and I think what the market mostly missed here um was an article that came out from the information and this article had indicated that the Blackwell series which is nvidia's next set of chips could be potentially delayed and this article was published on the Friday night on the same weekend that the carry trade unwind happened so I think it got a little bit lost in the market so if this delay does make Nvidia change their forecast the entire Market I think is going to really uh receive this negatively however we did get a lot of notes out that this delay is only six to eight weeks instead of quarters and the order book is incredibly strong and that Nvidia can really back stop any of the delays in this Blackwell series with their current run the hopper series uh the second thing to watch for when it comes to Nvidia um is the margin profile so when this while this stock price really has Skyrocket I think even after this sort of recent selloff it's rallied about 25% over a six day period here each time they print earnings they keep getting cheaper because they keep pushing the goal post out in terms of just how much profit they print so these are software margins at a hardware company and we've seen this in this market before and and this company's apple and they've done pretty well um so what the margin profile really indicates is just how much pricing power Nvidia has so AMD announced a server level acquisition uh either yesterday or the day before um to really try to to capture more of the stack um but they are far and away a second a very distant second and Nvidia is the One-Stop shop for all AI components but any erosion in the margin profile could mean that either competitors are taking share or that incumbents are finally getting uh good at building their own silicon which we starting to see signs of um despite these areas of caution for now anyway Nvidia is a dominant force in my opinion and could be the first $5 trillion do company if his capex cycle still has another two to three years of of build out which I do believe it has and HSBC analyst revised their forecast for Nvidia stock raising the price objective from $135 to $145 while keeping the stock at a buy grade the modification takes into account the analyst projections for nvidia's future product line and financial performance the company believes that in the second half of 2024 Nvidia will concentrate more on the hopper h200 series and less on its Blackwell B100 p200 gpus furthermore in the fiscal year 2025 Nvidia is expected by HSBC to reallocate more capacity to its Advanced packaging co-s s chips for the fiscal years 2025 and 2026 the analyst does not see a significant danger to nvidia's earnings despite a modest delay in the Next Generation gb2 200s based on Expert projections Nvidia is expected to generate revenue of $3.0 billion in the second quarter of 2025 which is more than management and consensus estimates this is expected to beat sales expectations similar to this sales are predicted to surpass consensus estimates in the 3D and fourth quarters of 2025 coming in at $3 33.0 billion and $ 36.0 billion respectively any possible losses from the B100 and gb200 products should be offset by the revenue from the age2 200 and age 20 chips in the second half of 2024 as a result HSBC raised its projection for data center sales in the fiscal year 2025 by 8% to $110 billion which is 4% more than the 105.6 billion consensus regarding the gb200 certification and its projected production ramp up by April 2025 the next major update is scheduled in October SBC continues to forecast a significant increase in data center revenue for the fiscal year 2026 with a projected total of 178.6 billion representing a 62% year-over-year growth and 14% over the consensus estimate of $16.3 billion SBC thinks that growth will be supported by the underlying trend of AI hyperscaler capital expenditure and AI demand even though Market expectations are high in light of the possible gains from the h200 and H20 chips the company increased its earnings per share EPS projection for fiscal year 2025 by 8% fiscal year 2026 estimates were essentially left untouched based on an estimated $451 EPS for the fiscal year 2026 and a Target price to earnings PE ratio of 32 times which is somewhat below the 5-year historic average the revised price target of $145 was set SBC maintains its by recommendation noting that there is a 14% upside to the current Target price and that any delays in the product road map will not significantly affect earnings because to the sustained strength in demand for AI gpus in other recent developments big financial institutions are still taking notice of nidia's financial performance given the company's steady profitability and strong demand for its Hopper and Blackwell Solutions dichi Bank kept its hold rating on Nvidia the bank added that nvidia's Financial picture is stable in spite of probable delays in the Blackwell platform Goldman socks and stiffle meanwhile have both maintained their buy ratings on viia stock and voiced optimism about the company's future simultaneously Advanced Micro Devices declared its intention to pay $4.9 billion to purchase DT systems a manufacturer of servers it is anticipated that this calculated move will improve amd's hardware and artificial intelligence chip offerings giving it a stronger Competitive Edge over Nvidia it is projected that the acquisition will be completed in the first quarter of 2025 these advancements are in line with current technological Trends which emphasize rapid Computing and artificial intelligence in particular it is imperative that investors stay up to date on these latest advancements as they maneuver through the everchanging technological industry 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 said back to the [Music] video let's take a look at Nvidia up almost 30% since August 5th as part of a larger Tech rally that's brought the S&P 500 Index up over 7% in that same time frame taking a look at Nvidia shares right now up nearly 7/10 of a percent the big question was The Summer's brief pullback a blip or was it a sign of something further in terms of weakness for the tech sector our very own Josh schaer joining us here with more Josh such a boring morning thank God we have you here talking video with us something finally to cover I've been refreshing the Bureau of Labor Statistics page for 30 minutes Maddie a lot of fun waiting for waiting a lot of fun waiting for those job revisions but yes over the last couple days I've been asking strategists about the rally that we've seen in Tech and the rally that we've seen Nvidia and if that is supposed to be worrisome again right we've had a lot of conversations over the past year about well this rally is only happening in Tech it's seven stocks leading the stock market higher that's not a reason to be bullish that's not a reason to be positive on the current rally but what strategists are pointing out is that it's more than just Tech that has been rallying yes Tech has led us from that August 5th bottom but if you go back over the last month a lot of stocks have been doing quite well so our friend Kevin Gordon over at Charles Schwab highlighted a chart to me showing that about 58% of companies in the S&P 500 have been outperforming the index over the last rolling two months this is the highest level that we've seen in the last two years so you can see that big tick up that you see at the end of your screen on that chart that was the amount of companies outperforming the S&P ticking up over that last month another interesting chart that our friend Brian bsky over at Capital Market highlighted that was interesting to see is for the first time in about 2 years you're looking at the rest of the index not the Magnificent 7 not the Nvidia alphabets apples of the world actually outperforming the mag 7 this quarter thus far largely what this tell strategist is this is a healthy bull market this is what you want to see to see uh confidence that stocks are going to continue to chug higher largely people are pointing to the fact that we still have solid economic growth yes we're talking about those be revisions today but still I think as Economist just said to you we're looking at potentially a soft Landing scenario here that would help cyclical areas of the market markets outside of tech so largely the rally we've had yes we've talked a lot about tech but other areas of the market also investors in Nvidia stock experienced a wild ride before to the company's Q2 earnings announcement in August on August 5 the price of its shares fell below $100 however it soon recovered and increased for days in a row from August 12 to august 19 on August 21 Nvidia was trading at roughly $128 a possible chip delivery delay brought on by a design issue in the Blackwell architecture and the instability in the global markets following the Yen carry trade were two factors contributing to nvidia's early month decline with an 80% market share in AI processors the chip giant continues to rule the AI sector rifles like as AMD how however are accelerating in an effort to increase GPU sales AMD announced on August 19 that it will acquired ZT systems for $5 billion the following trading day saw a 2% decline in Nvidia Shares gpus are specialized technology designed to execute Matrix calculations needed for artificial intelligence processing on August 28th Nvidia will release its fiscal key to earnings regardless of the outcome it will serve as a crucial indicator for artificial intelligence and the semiconductor sector for estimating earnings and projecting future changes in the stock price the earnings reports of its rival chip manufacturers can be a useful resource on July 30 AMD the second largest participant in the industry released impressive key2 earnings that surpassed analysts projections for both revenue and profitability earnings per share jumped by 19% to 69 while Revenue increased by 9% to $5 5.84 billion also it anticipates strong demand for AI however Intel's earnings Miss caused a drop in contrast to its $1.48 billion net income the previous year the corporation announced a $ 1.61 billion Financial loss on August 1 additionally revenue and earnings fell short of analysts projections according to CEO Pat gelsinger Intel attributed the loss on a decision to build core Ultra PC chips that can perform AI workloads more quickly for the fiscal q1 2025 Nvidia reported record quarterly sales of 26.0 billion up 18% from the key4 and 262 from the previous year the AI Behemoth projects $28 billion in revenue for the second quarter of fy2 with GA and non-gaap gross margins estimated at 74.8% and 75.5% respectively by contrast Q2 FY 24 reported $13.51 billion in Revenue with gross margins of 71.2% and 70.1% according to jaap and non jaap the next industrial revolution has begun according to CEO Jensen hang in the q1 earnings release businesses and nations are teaming up up with Nvidia to convert trillion dooll traditional data centers to accelerated Computing and construct a new kind of data center called AI factories in order to produce a new commodity artificial intelligence we're ready for the next phase of expansion analyst predicts that Nvidia will continue to grow due to the underlying demand for AI gpus with any delays in the company's product road map having little effect on earnings