But hold onto your seats, folks, because things are getting even more exciting! Nvidia’s stock is trading at some seriously stratospheric levels right now, with a mind-boggling 106 times earnings and a whopping 33 times sales! Those numbers are way, way higher than where Nvidia was at the end of 2022. So, naturally, some investors might be tempted to cash in those gains and walk away with a smile.
BUT WAIT, there’s a twist in this tale! Selling Nvidia might just be the mistake of the century! ️ There’s some solid evidence that suggests Nvidia could keep its incredible run going over the next year. I’m talking about the analysts, people! These financial wizards are predicting a median price target of 623 for Nvidia, and that’s a jaw-dropping 42% jump from where it’s at right now!
Now, let’s break it down and figure out why Nvidia might just blow our minds again. The biggest game-changer for Nvidia right now is its data center business! In the first two quarters of fiscal 2024, they’ve seen a jaw-dropping 38% year-over-year revenue growth, reaching a whopping 20.7 billion! And guess what? A mind-blowing 70% of that comes from the data center biz!
Hold on, because here’s where it gets wild! Nvidia’s data center revenue skyrocketed from 4.3 billion in fiscal Q1 to 10.3 billion in the following quarter! That’s right, in just one quarter! It’s all thanks to the insane demand for Nvidia’s H100 and A100 data center GPUs.
Literally, everyone from big-league cloud providers to cutting-edge AI startups to governments around the globe is in a frenzy to get their hands on Nvidia’s H100 processors! And, brace yourselves, because these bad boys are selling for a cool 40,000 each, with some configurations even hitting 70,000!
Now, here’s the kicker: Nvidia basically owns the AI processor market, with estimates soaring over 80% market share, and some folks even think it could hit over 90%! That’s why the data center business is booming, with robust volumes and pricing power driving growth like never before!
But wait, there’s more! The Financial Times estimates that Nvidia could sell a staggering 550,000 H100 GPUs in 2023 alone! Assuming an average price of 40,000, that’s a jaw-dropping 22 billion in revenue this year!
And folks, don’t think for a second that Nvidia’s stopping there! They’re expected to close fiscal 2024 with a massive 190% YoY increase in revenue to 17.5 billion, according to the experts!
But here’s where it gets absolutely mind-blowing! Nvidia is gearing up to TRIPLE its shipments of H100 processors in 2024! The Financial Times is even throwing around numbers like 2 million units!
So, what does that mean for us, the investors? Well, if Nvidia ships between 1.5 million to 2 million H100 GPUs next year, we could be looking at revenue ranging between a jaw-dropping 60 billion to 80 billion, assuming an average price of 40,000!
Translation? There’s a STRONG possibility that Nvidia could completely blow past those analysts’ growth estimates, setting the stage for an even BIGGER win for us investors!
But you’re probably wondering, just how much upside are we talking about here? Well, strap in, because this is where it gets mind-blowing! Analysts are already predicting a 40%-plus upside for Nvidia in the next year, but hold onto your hats because the high-end price target is an INSANE 1,100! That’s right, we’re talking a jaw-dropping 150% jump from where it’s at right now!
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Disclosure: This video was done by myself, and it expresses my own opinions. This is not investment advice or financial advice and it should not be taken as investment advice or financial advice in any way shape or form. I am not receiving any form of compensation for this video from the company or organization that I am expressing opinions about. This video is for entertainment and or educational purposes only.
SOURCES: https://www.fool.com/investing/2023/09/21/where-will-nvidia-be-in-1-year/
https://www.reuters.com/technology/nvidia-other-us-chip-stocks-stall-over-valuation-industry-worries-2023-09-21/
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