NVIDIA Stock Value Climbs Due To Rising Interest in AI Hardware

[T0@st]

Financial analysts at HSBC, the largest bank in Europe, have become very excited this week about NVIDIA's stock prospects. They have established that the American multinational technology company is set to grow due to an increased demand globally for hardware relating to artificial intelligence (AI) processing. HSBC's team of analysts have raised the recommendation on Nvidia stock (NASDAQ:NVDA) to "Buy" from "Reduce" - the reason being that AI business segments are on the rise and NVIDIA is well positioned to meet demand which: "more than offsets our previous concerns over a datacenter slowdown and rising inventory levels."

HSBC's price target on NVIDIA stock has more than doubled to $355 per share (from the previous $175), and the analysts claim that their past estimates were wrong and undervalued because of wider market trends in the server business: "We were too focused on the slowdown in datacenters, but what really surprised us was its pricing power on AI chips." Hence the analysts' call to double the NVIDIA stock target, in anticipation of excellent fiscal performance going into 2024. News reports point out an immediate 4.1% jump in stock following HSBC's recommendations. The chipmaker's shares have surged up to 140%, its highest position in a year, from a low period in October 2022.



View at TechPowerUp Main Site | Source

 

[SAINT ENZO]

I dont know why, but their stock more than doubling in the last 6 months pisses me off. Way overvalued

 

[dgianstefani]

I dont know why, but their stock more than doubling in the last 6 months pisses me off. Way overvalued

Disliking the leader/top player is a common human trait I've noticed.

 

[R0H1T]

Disliking the leader/top player is a common human trait I've noticed.

No one hated Nadal

Except probably some Novak/Fedex fans.

 

[Icon Charlie]

I dont know why, but their stock more than doubling in the last 6 months pisses me off. Way overvalued

Agreed. I'm not investing into that. Nope not at all. I'll stay with my commodities and energy stocks than go with that crap.

Yes AI is a Thing. But Not Ngreedia. If Boston Dynamics went public I buy that (the stocks) in a heart beat.

 

[RedelZaVedno]

Translation: = PC gaming is F...ed. Prepare to pay a grand for a dGPU or be gone. Ngreedia doesn't give a F about gamers anymore.

 

[P4-630]

The more you buy, the more you save....

 

[phanbuey]

The first mover is rarely the last or best mover. It will really also surprise them when a quantum chip smokes them in ai tasks and their stock plummets.

 

[chodaboy19]

I dont know why, but their stock more than doubling in the last 6 months pisses me off. Way overvalued

If you zoom out more on the time period beyond this year, the stock had lost more than half its value from the 2021, so in essence it's just recovering from very large losses.

 

[ZoneDymo]

Disliking the leader/top player is a common human trait I've noticed.

Has a lot to do with the reasons they are on top, anti consumer, anti competitive, stepping on others kinda behavior usually

 

[Why_Me]

I dont know why, but their stock more than doubling in the last 6 months pisses me off. Way overvalued

Nvidia has sold a combined 60,000 gpu's to Microsoft and Elon Musk due to AI.

 

[Bwaze]

Nvidia has sold a combined 60,000 gpu's to Microsoft and Elon Musk due to AI.

And that's why we won't get a new generation every two years with 50% performance uplift for the same money any more. And if they can squeeze the cryptomining boom every second generation on top of that, the gamers can go play with tabletop games.

 

[Divide Overflow]

How odd. The AI algorithms at HSBC are recommending more investment in AI!

 

[HisDivineOrder]

I'll be happy when Nvidia gets outmaneuvered in their latest gimmick and runs back home to gaming GPU's again. They thought quadro was the future. Then it was ARM and Shield. Then it was cars. Now it's AI. And every single time they come running back to gamers when the niche market catches up with better solutions and eventually does it better mostly without them. I just wish Intel would smack them so hard in dGPU's they'd come back early.

Has there ever been a company so eager to NOT do what they're known for and good at?

 

[W1zzard]

I dont know why, but their stock more than doubling in the last 6 months pisses me off. Way overvalued

Then you should sell your NV stock or buy shorts. P/E of 160 is quite interesting though

 

[kondamin]

And that's why we won't get a new generation every two years with 50% performance uplift for the same money any more. And if they can squeeze the cryptomining boom every second generation on top of that, the gamers can go play with tabletop games.

Performance stagnating a bit forcing game developers to optimise their code and textures wouldn’t be that horrible for the consumer.

 

[Bwaze]

Performance stagnating a bit forcing game developers to optimise their code and textures wouldn’t be that horrible for the consumer.

Right now we have several popular games that struggle even at normal resolutions without RT, if you don't use DLSS. You can argue they are "bad ports", but people are actually playing them on 1080p with all the graphics options on low.