|Bid||243.21 x 100|
|Ask||243.29 x 100|
|Day's range||240.66 - 245.63|
|52-week range||95.17 - 251.97|
|PE ratio (TTM)||50.42|
|Earnings date||7 May 2018 - 11 May 2018|
|Forward dividend & yield||0.60 (0.24%)|
|1y target est||251.12|
Zacks Investment Ideas feature highlights: Nasdaq 100 triple, NVIDIA, Alibaba, Lam Research and Apple
NVIDIA (NVDA) has been leveraging its Pascal GPU (graphics processing unit) architecture for two years, and it appears to be time for the company to move to a new architecture. This created excitement among tech enthusiasts that the company would launch a consumer version of Volta GPUs in 2018. This led to other rumors about NVIDIA’s new GTX 20 series GPUs.
Is NVIDIA’s high valuation justified? In this series, we’ve been discussing the increasing price of NVIDIA (NVDA) stock and how it’s making some money managers reluctant to buy the stock at such a high price. While some investors think that NVIDIA is expensive at $241, other investors think otherwise.
NVIDIA (NVDA) has been a name synonymous with the technology shift toward AI (artificial intelligence). The company has been at the forefront of the AI revolution, with its GPGPUs (general purpose graphics processing units) dominating the AI data center market, and is now expanding AI beyond data center into applications that need computation beyond what Moore’s Law provides. NVIDIA is partnering with big and small companies and funding AI startups and researchers that are working on new AI applications.
NVIDIA (NVDA) is one stock that has caught eyes of nearly all investors, as the stock rose more than 500% from $33 the start of 2016 to $199.3 at the start of 2018. NVIDIA’s stock fell 13% to $213.7 between February 1 and 5, while the S&P 500 Index (SPX-INDEX) fell 6% and the Market Vectors Semiconductor ETF (SMH) fell 8%. By contrast, NVIDIA rebounded and is now close to its January 2018 level once again.
Nvidia (NVDA) and Advanced Micro Devices (AMD) could both conceivably lose some sales of graphics processing units, or GPUs, used to participate in crypto-currencies, if startup Bitmain Technologies were to make a chip that steals some of the functionality of GPUs, accordion to a report from RBC Capital’s Mitch Steves. Steves, who rates Nvidia shares Outperform, responds to recent rumors that Bitmain is looking to make an application specific integrated circuit (ASIC) chip that "specifically address ‘GPU' based crypto currencies,” including Ether. Chances of such a chip are higher now than a year ago, thanks in part to the dramatic rise in value of Ether: The reason for no specific chip addressing this market in the past was three fold: 1) the market was tiny when Ethereum was at ~$10 to start 2017, ~1% of the size it is today, 2) the memory hard hashing algorithm did not function with current Bitmain products as the DRAM takes the brunt of the hashing power in GPU based coins (Ethereum, Ethereum classic, Monero, Zcash etc) and 3) Proof-of stake was supposed to go online in 1Q18.
Nvidia's rapid rise has come at the same time as a massive surge in the cryptocurrency market, so the fact that the company???s GPUs are often used in the coin mining process makes the whole story even more remarkable.
Here's how the GPU specialist is profiting or expecting to profit from the massive trend of AI. Many investors should be pleasantly surprised.