Nvidia (NASDAQ:NVDA), a fast-growing semiconductor innovator, has been a star in the past few years. NVDA stock has gained massive growth momentum and is one of the hottest stocks on the market today.
The company’s shares have soared more than 700% since 2019 and generated massive returns for investors. It went from about $60 in March 2020 to $130 in August of the same year, and has moved up from that level since February 2021.
In July 2021, it temporarily peaked at $200 and then went as high as $346 in November 2021. However, NVDA stock has since declined from the highs and is currently trading at $269.
Nvidia has dropped more than 20% since its recent highs and has yet to recover. This dip is a great chance to own this hot tech stock.
Nvidia Could Rule This Decade
An exciting company in the semiconductor industry, Nvidia has shown tremendous growth in the past few years. It is consistently producing chips using next-generation technologies like data analysis and artificial intelligence (AI) development.
Nvidia has set a gold standard for chipmakers, and the company’s growth story is nothing short of remarkable. It enjoys a solid position in the industry and holds a huge share of the graphics processing unit (GPU) market.
The demand for Nvidia’s GPUs is growing by leaps and bounds, which in turn is supporting the company’s massive portfolio. It is known for reporting blow-out revenues each quarter and has consistently beat analyst estimates. The fourth quarter results could be huge for the company and take NVDA stock back to its previous highs.
Nvidia is dominating the GPU market with no close competitors. If the company can manage its position in the coming years, it could be the stock of the decade. It has already made strong moves with its cloud platform, GeForce Now. The program allows gamers to use the high speed and latest technology featured in the company’s GPUs with their computer without owning the physical graphics card.
Nvidia has become a part of several industries including gaming, autonomous driving, data centers, cryptocurrency and AI. It is catering to some of the biggest clients in the industry and as their revenue grows, Nvidia’s revenue will also grow.
What Analysts Are Saying About NVDA Stock
The current dip in NVDA stock is a good chance to add it to your portfolio. Despite the pullback, the stock is a hot buy and the company enjoys a market valuation of $670 billion.
This is one stock that is only going to win in the coming months. There is a lot working in favor of Nvidia, and it will continue to reflect on the bottom line.
Citi analyst Atif Malik has put NVDA on a “positive catalyst watch.” The analyst believes the strong holiday season and expected supply improvements in the gaming segment will work as a catalyst for the company.
Further, Bank of America analyst Vivek Arya has a buy rating for the stock with a target price of $375. The analyst is confident in Nvidia’s momentum in data centers and gaming. Arya believes the company is in a position to address “secular growth opportunities.”
The Bottom Line on NVDA Stock
This is the stock to own for the decade. I believe the higher valuation of NVDA stock is based on high expectations from the company.
The company’s strength and growth potential will certainly lead to higher revenue and earnings growth. All in all, NVDA stock is a solid investment that can generate significant results for investors in the long run.
On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.