After the stock price soared nearly 240% in 2023, Nvidia, the "popular Crispy fried chicken" in the AI field, remained strong at the beginning of 2024, and even made the strongest annual start ever again - at least from the perspective of market value growth
Market data shows that in the just nine trading days since the beginning of the new year, Nvidia's stock price has risen by about 10%, and its market value has risen by about $128 billion. This is the largest increase in Nvidia's market value in the first nine days of the year in its history.
This unprecedented record is clearly a big advantage for Nvidia's bulls: it indicates that last year's popular artificial intelligence theme may still have further upward momentum this year, at least for this company, which is considered by many to be one of the biggest winners in the early stages of the AI concept.
From a horizontal comparison, Nvidia's performance in the first two weeks of this year has easily surpassed the US stock market and other stocks among the so-called Big Seven, making it increasingly a prominent highlight in the market.
In contrast to Nvidia's strength, in the past two weeks, the S&P 500 index has been stagnant near record highs amidst doubts about corporate profits and the expected time for the Federal Reserve to cut interest rates, while some of the seven giants, such as Apple and Tesla, have seen more significant declines.
Nvidia is still making history
Shana Sissel, CEO of Banrion Capital Management LLC, said, "From my perspective, Nvidia is the best target. Nvidia dominates its (GPU) market, has strong customer relationships, and is growing rapidly - it's hard to find too many loopholes in this hype theme."
Although in terms of percentage point increase, Nvidia's growth in the first nine trading days of this year was not as good as last year (about 14%), when Nvidia's record breaking rise marked the beginning of its hot performance throughout the year. But to be fair, last year's increase initially had some "moisture" - it was recorded after the stock price fell by about half in 2022. This year, Nvidia is once again seeking an upward breakthrough after reaching a historic high last year, which is obviously even more rare.
For Nvidia's stock price in the next 12 months, the average target price for industry analysts is currently close to $650- indicating that this company with a current market value of over $1.3 trillion still has about 19% room for growth. As of last Friday's close, Nvidia's stock price has recently closed at $547.10.
The International Consumer Electronics Show (CES) held last week has further consolidated the confidence of Nvidia stock supporters. During this period, the company launched three new GPU chips specifically designed for AI PC devices and stated that compared to regular PCs, RTX AI based laptops have a system performance improvement of up to 60 times.
Last week, Nvidia's CFO Colette Kress reiterated CEO Huang Renxun's statement that the company expects to continue growing until 2025, which also boosted the company's stock price.
Piper Sandler& led by Harsh V. Kumar; "Nvidia has expressed confidence in terminal demand and pointed out that supply will increase every quarter of this year. This gives us high confidence in its entire supply and order model for 2024," wrote a report by Co. analysts on January 11th
Nvidia is expected to release its fourth quarter financial report in late February. According to industry compiled analyst estimates, Nvidia's revenue is expected to further increase by approximately 230% in the fourth quarter of last year, following a growth of approximately 206% in the third quarter of last year.