Has Nvidia (NASDAQ:NVDA) stock gone too far, too fast in 2023?
Not at all, as companies like Nvidia always seem to find new ways to deliver value to the end users and shareholders. Nvidia is still a pioneer in gaming hardware, but there’s more to the company’s growth story.
Prepare for Nvidia to embed innovative technology – including artificial intelligence in places you might never have expected.
By now, you probably know that Nvidia is famous for manufacturing graphics processing units. These are powerful, high-end tech components often used in gaming consoles and personal computers.
In order to develop as a company, however, Nvidia must introduce new products and different ways to use them. Sure, the company will continue to offer its already popular graphics chips, but get ready for Nvidia to delve into exciting niche markets – and to tap into new revenue-growth opportunities.
| NVDA | Nvidia | $271.04 |
NVDA Stock Isn’t Too Expensive
First things first: It’s important to address the elephant in the room, which is the NVDA stock price.
It has moved relentlessly higher in 2023 so far, but that doesn’t mean it can’t continue to climb. Keep in mind, analysts expect Nvidia’s earnings to reach $4.49 per share in fiscal 2024, and $5.97 per share the following fiscal year.
Nvidia’s valuation can be justified by the company’s ability to deliver results. As long as Nvidia’s products are in high demand, the company’s top- and bottom-line results should keep the short-sellers at bay.
For Nvidia, having in-demand products means developing new concepts while also catering to the company’s core end users – which, of course, are gamers. Nvidia is giving gamers more ways to play with the GeForce NOW platform.
This platform enables users to play video games across multiple device types, including PCs, televisions, tablets and smartphones; no controller needed. As an added feature, GeForce NOW “connects to digital PC game stores so you can stream the games you already own.”
AI Hardware Will Drive Nvidia’s Growth
OpenAI may have brought machine learning into the public consciousness with ChatGPT. However, Nvidia is quickly becoming America’s AI hardware king. Chatbots like ChatGPT are power-intensive, but that’s not a problem as Nvidia has a chip called the A100. This chip provides the computational power required by AI platforms.
Nvidia’s machine learning compatible hardware also includes the company’s DGX supercomputers. These, according to the company, “are now running 24/7 at businesses across the world to refine data and process AI.”
To quote Nvidia CEO Jensen Huang, “DGX supercomputers are modern AI factories.”
What truly could drive Nvidia’s continued growth, however, is the company’s introduction of machine learning hardware in unexpected places. A prime example would be Ella, an smart stroller developed by Canadian startup GlüxKind.
Reportedly, Ella uses Nvidia’s Jetson “edge AI and robotics platform to power its AI features.” These features include voice control, object detection and self-driving capabilities.
Clearly, these are no ordinary strollers – and Nvidia is discovering extraordinary use cases for machine learning.
What You Can Do Now
Are shares of Nvidia too pricey to buy in 2023? Certainly not, as the company delivers undeniable results and Wall Street expects Nvidia to maintain its track record of tech-market leadership.
Going forward, keep a lookout for Nvidia’s new products and upgrades in machine learning compatible hardware. Over the coming months, Nvidia will undoubtedly continue to grow in the field AI-embedded technology. If you agree, consider a buy-and-hold position in NVDA stock.
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.
