Should You Buy Nvidia Stock Now? A Timely Analysis | Nvidia Stock | NVDA Stock

welcome back to fast Market everyone Kevin HS Alex coffee now it's time for our cashtag segment now I want to bring in the vice president of research at like.com Miss Megan Brantley to the show Megan we're covering Nvidia it's a fun topic on a day like this and actually we could turn this into the Nvidia show if we really wanted to but I looked at your charts and one thing comes out to me and that is powerful that Nvidia has going on right now give us your interpretation of the likefolio data you know whenever we look at Nvidia and I feel like we've been saying this for some time this company is best of breed in its space but it's also best of breed just among innovators even outside of when you think of AI you know whenever we look at different Tailwinds it's almost a matter of you know pick your favorite Tailwind for NVIDIA is it autonomous driving is it robotics is it you know this massive transition of data centers into this Advanced Computing um what they call AI factories um I think this is driving a lot of interest in Nvidia and its technology and honestly from what we're seeing it's that demand is so high we're not sure Nvidia can even keep up and so I think that that is the story it's a great spot to be if you're Nvidia and this you know whenever we break this down for for leaders you know I think AMD could be a close or a second place but I'm not sure that it's even close to Nvidia and we're still bullish on AMD so I think that you know whenever we look at Nvidia right now we see it trading I think it's down over 20% from June highs you know whenever we see pullbacks like this historically these are gifts to long-term investors and Megan when you kind of uh put that into perspective with the fact that it's been such a busy week in the market we've heard from so many of its peers and kind of customers over the last few weeks really the only thing missing from this week I think would have been Nvidia earnings then I don't even know what have happened but we get a little bit of a glimpse into that demand still being there cuz these hypers scalers keep talking about spending money you don't have to think too hard to figure out where they're spending money at um is that showing up in the data as well when you're seeing kind of uh excitement around uh visits or cap acts around Nvidia yeah so whenever we we can look at both of these things I think those are the two charts we'll look at today whenever we look at web visits they're um at highs we so we see a lot of people who are still engaged still exploring Nvidia products this is a good sign from us for future growth and then whenever we look at capex spend it's really tremendous and we actually see signs and from what we've listened from nvidia's customers whenever you think of names like meta and Google and Amazon you know we see these this spend accelerating in the second half of the year and even into 2025 you know the chart right there that you're looking at the capex spend this was before Amazon released and I think that it's capex spend was even higher than people estimated over 16 billion and it said you know we're investing a lot in Ai and so I think that this the strength it was even more powerful than people even were estimating heading into this report and they knew that it was going to be strong I think the spend was so high it actually hurt the stock a bit it hurt Amazon but this translates to considerable demand for NVIDIA we also saw AMD come out with a nice report strong demand for its AI products and so we know that you know Nvidia is the leader here so you can only imagine what demand looks like moving forward for this company so you know while there may be questions of supply and you know how it can step up to meet this growing demand how long can it sustain this exponential growth but all metrics that we look at suggest that you know growth will continue to be exponential that you know Nvidia looks poised for another record-breaking quarter and we're about a month out so it's kind of nice whenever you look at this environment right now we see this as a nice opportunity especially for long-term investors with a little bit of near-term weakness alongside the market at large and what we expect to be a really really nice report in about a for the previous few days nidia's stock has fluctuated up and down mostly in response to changes in the markets the Federal Open Market Committee FB Miss meeting on Wednesday gave it a boost when the FED said that it was moving closer to lowering the federal funds rate Microsoft also gave Nvidia good news as the business revealed on Wednesday that it is Raising its AI infrastructure Investments the Revelation served as additional support for nvidia's stock since the company is a significant supplier of AI technology to Microsoft meta platforms a significant Nvidia client recently announced plans to increase its AI spending not only for this year but also for 2025 but some depressing economic news on Wednesday afternoon overshadow meta positive AI news this week's numbers for unemployment claims exceeded forecasts while the Manufacturing Index a measure of American industry came in below projections since all of the main indices were down on Thursday most stocks including Nvidia were negatively impacted by these indications of a possible slowing economy we won't have growth figures until August 28th when Nvidia reports its profits however nvidia's growth has not been a problem the company's profitability are increasing Revenue reached a record $26 billion in the first quarter up 262 and earnings per share shot up to $5.98 per share up 6 29% Nvidia predicted revenue of $28 billion for the second quarter which would set yet another record analysts are predicting revenue of $28.4 billion with rival a D's chip division already reporting impressive key2 results with Microsoft and meta predicting increased investment in AI Nvidia ought to have yet another Stellar quarter however with Nvidia one of the stocks that has grown the quickest over the last two years growth isn't the issue rather its value is whether you choose to invest in Nvidia directly or through an exchang traded fund ETF it is a fantastic company and one you should have in your portfolio for the long run investor attention has been particularly focused on big Tech's Capital expenditures throughout this earning season this investment is thought to be a measure of how optimistic Microsoft Amazon meta and alphabet are about the potential benefits of artificial intelligence it's a little more complicated than that though as Julie Heyman noted on Thursday since they have to put everything on the line to even be seated at the table however because of the Dynamics of the supply chain what accumulates and melts in the mountains flows into the rivers and lakes and big Tech is still making it rain as the chart of the week demonstrates and the lake is NVIDIA 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 to dat by nvidia's most recent updates and the most recent news from the stock market you can subscribe to our Channel we publish daily updates of 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 let's turn now to a big story here this week we're talking taking a closer look at the tech trade Nvidia is the next big test for the market when you take into account earnings but as it stands right now you got to look at the moves that we've seen in Nvidia today and this week taking a look at today's moves you're looking at another day of losses off nearly 7% as it stands right now when you take a a tech overall the NASDAQ 100 is down more than 5% this month meaning that August is already tracking for the worst month of the year and we're only in day two of the trading day here for uh for the month of August so here to discuss what's ahead for Tech we want to bring in ioka yoshioka senior portfolio manager at wealth enhancement group it's great to have you ioka and and thanks so much for taking the time to uh join us here this morning I'm curious we can start with Nvidia because that certainly has been in a wild volatile ride here this week I think the initial read on some of these uh big Tech earnings reports was that the spending that's planned here for AI that that that that is actually viewed very positively here for names like Nvidia but since then we've seen some selling action so I'm curious what your big takeaway from this week's uh crazy week that has been is so far absolutely it's been definitely a a much more volatile week than we are used to in markets um but we you know started I think July with the vix uh at at 12 and so you know perhaps markets were a little bit complacent um you know going into earning season uh here and so you know now that we've had a a good look at many of the tech earnings you know we did see that spend and most likely going to Nvidia for their gpus however you know sentiment and and the earnings bar was very high going into earning season and I think you're seeing a lot of that sort of come out just because expectations were very high um and the reports were okay but nothing great is any dip that we see in Nvidia still a buying opportunity so I think with Nvidia you have to be patient and you know you don't have to go all in right here right now um you know when momentum starts to to roll both on the upside as well as on the downside it tends to continue a little bit so you know for investors we think you should get comfortable with some of the volatility if you don't like seeing the stock down six to 7% on a daily basis it it shouldn't be something that um you know you should put in your portfolio however you know the long-term aspect and again depending upon your time frame you know it could be a great opportunity simply because you know AI has very long legs especially as so many companies are investing in what the potential could be with AI based on estimations provided by Bloomberg and quarterly reports inv ind's revenue is primarily derived from four well-known stocks within the Magnificent 7 Microsoft meta alphabet and Amazon the largest transfer comes from Microsoft whose expenditures make up 19% of nvidia's total revenue the world's most valuable company is Microsoft with this the company's largest client by far triple that of alphabet and Amazon and nearly doubling that of meta furthermore according to statistics from blo Nvidia receives 45% of Microsoft's Capital expenditures whereas the chipmaker only receives 15% of alphabet's Investments for instance this data serves as a reminder that in the AI jungle chipmakers take the lead in eating well before hyperscalers are able to provide investors with much more than mere Clues on when their investments in AI would start to generate Revenue nvidia's stock performance has been astounding as a result of the company's triple digigit earnings growth Over The Last 5 Years the technological Giants shares have increased by 2,500 per. additionally despite a recent slowdown in price performance shares have still increased by roughly 120% since the beginning of the year the explanation for this rise is straightforward Nvidia has established a strong presence in artificial intelligence AI one of the fastest growing areas in the world today the company's outstanding Graphics processing units gpus have allowed it to command 80% of the market for AI chips important AI operations like training and inferring large language models allans are powered by these CPUs some investors are now speculating as to whether nvidia's greatest growth wave is finished as other chip companies introduce products to compete with its Flagship chip however I believe that something specific which is almost here will be nvidia's greatest growth engine to date now let's learn more first a brief overview of nvidia's Journey thus far the business was a major player in the video game industry a few years ago because its gpus allowed Gamers to experience games as if they were real so what does this really mean for Nidia 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 goza long way in helping us grow that said back to the video AI remains worth watching segment for Global Investors in 2024 but how do you keep up with the AI sector and others that you may interested in I recommend 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 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 on ad related opportunities at the same time Mumu is one of the cheapest trading platforms I found it offers zero Commission on stocks options and EDS after comparisons I've discovered the fees are among the lowest right now new users who open an account using my link and make a qualified deposit can get up to 15 free stocks enjoy a limited time 88.1% apy on idle catch for 3 months and earn up to $300 cash reward for transferring in their portfolio these rewards can be earned together so don't miss out and thanks again to Mumu for sponsoring this portion of the video Capital spending chart is the key CH here today because the Market's having a tough week and for companies like Amazon down today in alphabet uh that that was down the reasons they were down was their Capital spent and meta basically came out and reinforced how much they're going to spend you you've got Microsoft also on your chart however in a bumpy week for the market the data going towards Nvidia couldn't be stronger th this is basically like saying you know I I've got a I've got a cheeseburger that helps you lose weight and I'm the only one that has it and so everyone's going to want the cheeseburger that's what Nvidia has basically right yeah and you know whenever we listen to people talk you listen to um Zuckerberg talk you listen to anthropic CEO talk that the necessary amount of computing that resources grows exponentially with each successive AI model so there we're talking exponential growth moving forward as um you know the technology and the power of AI just continues to compound and so I think that this is something that we're still in the very early Innings and right now Nvidia has a really nice lead you know Nvidia is almost like Katie Lei in the Olympics pool right she's so far ahead you can barely even see competitors in the screen when she finishes the race that's in videoid right now that's not to say that it can't change um we certainly like AMD as well we see this because you know AI is a rising tide that's lifting several ships but right now it's definitely um positioned to seemingly lifts Nvidia the most Megan when you talk about early Innings of the game is the risk to this uh particular company in Nvidia doesn't seem like the lack of demand is there now but is the risk uh the game getting a rain delay or something if we do have a recession that these companies are forced to pull back or that or do you find that the greater risk is that there isn't Consumer interest in uh the AI the way that uh the hype kind of suggests that there will need to be cuz Nvidia is not priced for a couple good quarters it's basically priced for this uh this excitement to basically happen into perpetuity at the rate that it is yeah I think that you're exactly right right now our camp says that or in research that we're looking at and what we're betting on we see this as continuing um into perpetuity as you mentioned but I think that there certainly obviously is risk near term term for you know some Market weakness at large that may make um Nvidia shares a bit volatile in the near term but especially if we see large scale pullbacks and things of that nature at least over the next year or so we're certainly buyers of this name obviously it's hard to project out I mean can you even imagine in two years what technology will look like and what the AI um landscape will look like that it's tough to wrap your brain around but for now Nvidia is the clear leader and it's one that we're certainly not betting against yeah and however it soon became apparent that nvidia's gpus may be useful for a variety of applications across Industries most notably a choosing to concentrate on this rapidly expanding sector the tech company created gpus for developers of AI platforms moreover Nvidia expanded beyond gpus the business is the go-to source for premium chips and more since it has created an entire ecosystem of goods and services for a key clients include industry Titans like Tesla and meta platforms Alon musk the CEO of Tesla expressed his immense admiration for nvidia's Hardware capabilities and execution on the company's latest earnings call furthermore we are observing that there is such a huge demand for NVIDIA Hardware that obtaining the gpus is frequently challenging thus it's evident that nvidia's expansion is still ongoing can it however really become stronger in my opinion yes and the business's impending introduction of the Blackwell architecture and ship may be the Catalyst for this next phase of even greater expansion six revolutionary Technologies are included in the Blackwell architecture which contains the most potent processor to date as well as characteristics that provide enhanced security dependability and data analytics capability Nvidia stated in its first Corner earnings report that Blackwell was in full production with plans to launch it globally later this year at that moment the business stated that demand outpaced Supply echoing recent remarks made by Elon Musk regarding Nvidia gpus as for next year Nvidia anticipates this trend to continue nevertheless Nvidia is always striving to make its gpus available to individuals who require them CEO Jensen hang has underlined how challenging it is to meet a need this great all of these indic indicates that nvidia's expansion is still ongoing and the fact that Blackwell provides such performance enhancements enabling businesses to execute generative AI on llns at up to 25 times lower cost and energy consumption than its predecessor for instance indicates that growth may be about to take off according to Wang Nvidia the business anticipates a significant amount of income from Blackwell this year however given VI's history and the impending release of Blackwell this pricing seems sense if nvidia's stock doesn't jump up right away there is obviously plenty of room for long-term growth Blackwell in my opinion will be crucial to nvidia's next phase of explosive development thus it may be worthwhile to hang around or take advantage of the current drop in the stock price to profit from this fascinating tale with all of these considerations Nvidia is unquestionably a great buy especially if you're looking to invest for the long long term 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