Nvidia stock: New record – the AI stock shines.

Last Updated: 9. Januar 2024By

Nvidia sets new record at the stock market. With a gain of over 6%, the stock broke the new record mark on Wednesday and was able to achieve another small profit on Tuesday. The AI boom is in full swing!

Nvidia is earning a lot – how much exactly? We will all find out on February 21st when Nvidia publishes its next quarterly figures. However, the experience of the past few months teaches us that Nvidia has consistently achieved positive surprises. The likelihood that the Americans will be able to report higher revenues and profits again is quite high historically.

As a reminder: In the summer of 2023, Nvidia surprised fundamentally. Analysts had expected quarterly revenues of around $7.2 billion until late spring, but Nvidia had already announced an expectation of $11 billion. In the end, Nvidia reported revenues of $13.4 billion.

In the third quarter, Nvidia once again managed to exceed expectations by more than 10%. And the AI boom is far from over, it is only just beginning. The year 2024 is expected to bring a major breakthrough in this market. Nvidia is fully on board: The company has now announced that it has developed AI-related components. These are „desktop graphics processors“ that utilize the benefits of artificial intelligence.

Nvidia in a strong trend That’s why it is uncertain how high revenues will be for the fourth quarter, but also for the new fiscal year. However, the market is increasingly offering demand and revenue opportunities. I expect revenue to increase significantly.

In numbers: The market expects revenue of around $58 billion for the new year. Net income is estimated at around $27-28 billion. This corresponds to a P/E ratio of around 45 with a market value of $1.3 trillion. In other cases, this would be expensive.

However, despite its immense market capitalization, Nvidia is a growth company. The trend is also intact. Based on the record high, no one will incur losses anymore. Analysts expect a price of around 600 euros! That would still be around 26% potential. At least, the stock is a first-class case for trend investors.

Nvidia: records – strong – WKN: 918422 – ISIN: US67066G1040 Source: https://fundamental.aktienscreener.com/US67066G1040/EI/nvidia-corp/data