Nvidia Stock Will Soar Over the Next 5 Years.

Nvidia Overcomes Recent Losses In Stellar Week.

Nvidia Is A Buy Now!

Undoubtedly, Nvidia (NASDAQ: NVDA) has already seen its stock soar. As the chipmaker became the face of the artificial intelligence (AI) revolution, its share price rose, and it's now up by more than 600% since the beginning of 2023. Yet that wasn't the first time the company's market cap multiplied in a relatively short period. Between early 2020 and late 2021, Nvidia's stock gained more than 400%.

I think it may be some time before we see the company make another run on par with either of those. To be sure, Nvidia is in a strong position to continue growing its market-leading data center segment for some time. Major customers such as Meta Platforms and Alphabet are showing no signs of slowing their massive spending on data center infrastructure. That being said, its growth will likely be slower than what fueled its most recent run.

We're already seeing this play out. As the graph below shows, year-over-year quarterly revenue growth is decelerating. Don't get me wrong -- its 122% growth in Q2 was still incredible, but it was less than half what the previous two quarters delivered, and the company is projecting roughly 80% year-over-year growth for the current quarter.

In Q2, Nvidia's automotive arm produced $346 million in revenue. That's not bad, but it's a far cry from where it could be in the future. In fact, CEO Jensen Huang believes it to be a $300 billion market. This would include the software and hardware that will be embedded both in the cars themselves and in data centers that will be integral to powering an autonomous vehicle network. Huang says he believes this will be "one of the largest AI industries in the world."

Of course, we should take a CEO's words with a grain of salt when they're talking about their company's future opportunities, but Huang's estimation is in line with analysis from respected research firms. How long it will be before the technology matures to a point where it can really take off is the bigger question. It may be some time before we have truly autonomous cars on the road, but there has been a lot of progress toward that goal of late. I think it's more than possible that this market will begin to explode before the end of the decade.

Last week, Nvidia fell sharply below the 50-day moving average. The stock has recovered since and rebounded from the 50-day line, according to chart analysis.

Chief Executive Officer Jensen Huang said that the return on investment for artificial intelligence infrastructure plays like Nvidia remained strong since "infrastructure players like ourselves and all the cloud service providers put the infrastructure in the cloud, so that developers could use these machines to train the models, fine-tune the models, guardrail the models, and so forth.

A positive outlook on NVIDIA Corporation (NASDAQ:NVDA) is supported by its impressive financial performance and leadership in key areas like artificial intelligence (AI) and data centers. In Q2 FY2025, NVIDIA Corporation (NASDAQ:NVDA)’s revenue surged 122% year-over-year to $30 billion, with net income increasing 168% to $16.6 billion. This growth was driven mainly by a 154% rise in data center revenue, reaching $26.3 billion, due to high demand for NVIDIA Corporation (NASDAQ:NVDA)’s advanced Hopper GPUs used in AI applications.

NVIDIA Corporation (NASDAQ:NVDA)’s leadership in AI is further highlighted by its upcoming Blackwell architecture, expected to boost revenue even more. The gaming segment also performed well, with a 16% revenue increase to $2.9 billion, thanks to the versatility of its RTX GPUs, which are used for both gaming and AI tasks. NVIDIA Corporation (NASDAQ:NVDA)’s commitment to returning value to shareholders is clear with its $50 billion share repurchase program, showing strong confidence in future growth.

Nokie Says: This Stock is a 'No-Brainer' to purchase and hold for a very long time.

Nokie Says: If you had purchased $120.00 of this stock in 1999, today it would be worth $17,076,960. Yes, 17 Million Dollars from a $120 investment.

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