Nvidia Is a Market Leader and it Is Here to Rule

  • Nvidia (NVDA) is expanding beyond the gaming segment.
  • It has entered the automotive industry with agreements with some of the top companies and has a trillion dollar opportunity.
  • NVDA stock is a solid buy and hold.
Nvdia (NVDA) office building with lime green logo on sign out front. Green grass and clear sky are visible..

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The leading juggernaut, Nvidia Corporation (NASDAQ:NVDA) has become the talk of the market. It is not surprising, though. The company is a leader in the industry and has stellar margins that prove its potential. Most importantly, it is a company that is helping multiple companies grow and expand within the tech sector. Despite the supply chain issues, NVDA stock is up 27.9% over the past six months. It was trading at $207 at the end of September and is trading at $264 today. The stock hasn’t fallen much despite the overall market slump and tech sell-off.

Nvidia has a reach across several industries including graphics, gaming, supercomputing, autonomous driving, machine learning, the metaverse, artificial intelligence, robotics, and automotive. This clearly shows that the company is not dependent on a single industry for growth and all of these industries are growing at a rapid rate. I believe Nvidia holds a strong position in the industry and its bottom line will continue to grow. The company is irreplaceable and NVDA stock is the one to own and hold for a decade.

NVDA Nvidia Corporation $264.65

Massive Opportunity Outside The Gaming Sector

Nvidia seems to have set the gold standard in graphics processing units (GPUs) and the majority of its revenue flows from the gaming segment. However, it looks like the company is ready to shift focus. At the GPU Technology Conference, the company increased its addressable market opportunity to $1 trillion with a breakup of $300 billion each for automotive, chips, and software with only $100 billion for gaming. The company is making the right moves to ensure that it captures the thriving market. It already holds a strong position in the gaming segment, which means the company is ready to move toward dominating the other industries.

The company’s Chief Executive Officer (CEO) Jensen Huang stated that Nvidia has an “$11 billion vehicle tech order pipeline over the next six years.” Huang added that it could be really significant for the business in the automotive industry.

The automotive industry could drive continuous growth for the company. The CEO believes that it could be the next multi-million dollar business for Nvidia. It has signed contracts with Lucid (NASDAQ:LCID), Daimlers’ (OTCMKTS:DMLRY) Mercedes Benz, and BYD Company (OTCMKTS:BYDDF) for the driving systems. Nvidia aims to increase the revenue from the automotive sector in the coming years and it will impact the bottom line.

Wall Street Loves NVDA Stock

Evercore ISI analyst C.J. Muse considers Nvidia as the most important technology company today. The analyst has an Outperform rating for the stock with a price target of $375. Muse added that besides having the best-in-class hardware solutions with its GPUs, the company is also expanding its portfolio and depending on the expertise across central processing units (CPUs) and data processing units (DPUs). To ensure these devices run smoothly, Nvidia also has software at the foundation level and the application-specific level, which will help the expansion of artificial intelligence.

Ivan Feinseth, a Tigress Financial analyst has a price target of $410 for NVDA stock with a Buy rating. After the recent analyst day and GPU Technology Conference, where the company highlighted its products, the analyst added that Nvidia continues to evolve as the leading artificial intelligence processing provider in the world.

The Bottom Line on NVDA Stock

I have always loved NVDA stock and the recent technology conference threw light on how much potential the company has. There is ample room to grow and Nvidia will certainly make the most of the opportunity. Besides the metaverse and artificial intelligence, the company also has a solid growth opportunity in the automotive industry and it has strong plans for it.

NVDA stock is a strong buy and hold for the long-term. It is one of the best tech companies in the market today and it is here to rule the industry. Any dip in the stock is a good chance to buy.

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.


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