Nvidia (NASDAQ:NVDA) is more than a graphics processing unit maker for video game consoles. The company is also deeply involved in the artificial intelligence space. Even if you believe that NVDA stock has gone too high and can’t keep going, think again. A fresh upgrade indicates that Nvidia’s shareholders may enjoy more gains before the year is over.
What will be the main tech theme of 2023? So far, it looks like the top-of-mind motif of the year will be machine learning, and especially generative AI. The popularity of OpenAI’s ChatGPT chatbot platform ensured many businesses will want to avail themselves of this emerging technology.
Nvidia loudly and proudly proclaimed its interest in serving the demand for generative AI tech. Sure, Nvidia will continue to manufacture GPUs for video game consoles, but don’t ignore the AI angle if you’re considering an investment now.
Is NVDA Stock Too Expensive Now?
If anything might be a deal-breaker for prospective investors, it would be massive run-up in NVDA stock this year. Amazingly, the stock rallied from less than $150 to more than $260 in less than three months.
Let’s not jump to any conclusions from this, though. Nvidia can still deliver supreme value to its shareholders this year. After all, the company beat Wall Street’s revenue and adjusted earnings per share expectations for 2022’s fourth quarter.
Not only did Nvidia report $6.05 billion in revenue and earnings of 88 cents per share, but the company kept investors interested by emphasizing a strong focus on machine learning. CEO Jensen Huang declared AI is at “an inflection point,” and proudly discussed Nvidia’s “new AI supercomputer.”
Nvidia Gets an Upgrade on AI ‘Metatrend’
Since Nvidia’s GPUs can help to power the tech gadgets that use generative AI, investors should expect NVDA stock to continue rising. Indeed, one Wall Street expert sees the stock breaking above $300 because of Nvidia’s AI focus.
Recently, Morgan Stanley analyst Joseph Moore upgraded Nvidia shares from “equal weight” to “overweight.” Plus, Moore raised his price target on the stock from $225 to $304.
The analyst observed that the “high capital intensity” of AI-related “workloads, particularly on the training side, is now a major part of the calculus for the largest companies in technology.” Nvidia, meanwhile, has “dominance in the training market that is likely to persist for several years.”
Moore sees AI as “too much of a megatrend” for investors to dismiss. The analyst expects NVDA stock “will continue to be hard to ignore in an otherwise challenging semiconductor environment.”
What You Can Do Now
Remember, just because a stock has recently gone up, doesn’t always mean it’s too expensive to consider now. Nvidia should continue to deliver excellent value to its shareholders in 2023, especially as the company ambitiously serves the AI market.
To borrow Moore’s phrase, AI is “too much of a megatrend” now and Nvidia is a major player in this fast-growing space. Therefore, NVDA stock will certainly be “hard to ignore” this year and is worth a look if you’re seeking exposure to the AI hardware market.
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.