Trade Hero Weekly Research Report
Week of 5
Stock Pick of the Week: NVIDIA (NASDAQ: NVDA)
Current Price
$129.84
Sector
Semiconductors
Revenue Growth
93.61% YoY
Dividend Yield
0.031%
Revenue Growth
Previous Earnings Report
Overview of Operations:
NVIDIA (NVDA) is a global leader in AI, gaming, and data center technologies. The company specializes in GPUs (Graphics Processing Units), providing critical hardware for gaming, professional visualization, data centers, and automotive sectors. Its key divisions are:
1. Gaming: NVIDIA’s gaming division is dominated by its GeForce RTX graphics cards, which are widely used in gaming PCs and consoles.
2. Data Center: NVIDIA's GPUs are critical in powering AI applications, data center infrastructure, and supercomputing, positioning the company as a leader in AI technologies.
3. Automotive: The company is also partnering with Uber $UBER and expanding into the autonomous driving market with its DRIVE AGX platform, offering significant growth potential in the electric vehicle sector.
Sector Outlook:
The semiconductor industry is booming, fueled by advancements in artificial intelligence, 5G, and autonomous technologies. NVIDIA is positioned at the forefront of this technological revolution, with AI and data centers providing significant growth catalysts. As cloud computing and AI workloads continue to expand, NVIDIA’s dominance in GPUs will remain a critical factor in shaping the future of tech.
Upcoming Catalysts:
1. AI Expansion: Increased demand for AI-powered applications and machine learning is expected to drive NVIDIA’s data center revenue higher in the coming quarters.
2. New Product Launches: NVIDIA’s next-gen graphics cards and computing products are expected to fuel demand, especially in AI and gaming sectors.
3. Acquisition Strategy: Recent acquisitions in AI and data center technologies will strengthen NVIDIA's market position and provide additional growth opportunities.
Performance Highlights:
Q3 2024 Revenue: $35.1 billion, up 17% from the previous quarter and up 94% from a year ago.
Major News: Launched Denmark’s largest sovereign AI supercomputer, an NVIDIA® DGX SuperPOD™ driven by 1,528 NVIDIA H100 Tensor Core GPUs and interconnected using NVIDIA Quantum-2 InfiniBand networking.
Strategic Plan: The company continues to supply advanced AI chips to major tech firms, including Amazon, Microsoft, Alphabet, and Meta Platforms. These technology giants have been investing heavily in their AI infrastructure.
📊 Big Tech still making record-breaking investments into new #AI technology. $MSFT $GOOGL $META $AMZN pic.twitter.com/mNFNiDW5on
— Cheat Code TV (@cheatcode_tv) February 8, 2025 Why NVDA?
NVIDIA is positioned as a key player in the rapidly growing AI, data center, and gaming sectors. The company’s leadership in AI computing and strong growth trajectory make it a compelling pick for Week 5. Despite its high valuation, the potential for significant long-term growth driven by AI and data center expansion supports its upside potential.
Key Metrics
Revenue Growth
+93% YoY
Wall Street Price Targets
$135 - $220
AI Growth
STRONG
Investment Strategy
NVIDIA offers a compelling growth opportunity for long-term investors. Consider these strategies:
- Buy on Strength: Leverage NVIDIA’s growth in AI and data centers, positioning for sustained growth over the next few years.
- Focus on Technological Leadership: NVIDIA’s position as a leader in AI and GPU technologies will continue to drive growth and innovation.
- Monitor Key Segments: Watch for continued strength in data centers and gaming as major revenue drivers.