NVIDIA Corp (NASDAQ-NVDA) continues to emerge as an outstanding company, especially for its solid performance since the start of this year 2024. Nvidia stock has started the year with strong momentum and has surged over 96% year-to-date, approaching the $1,000 milestone in March. However, that growth has stalled at $974 per share. Currently, Nvidia is in a consolidation phase, with its stock price oscillating between $756 and $974 per share. Many investors consider Nvidia the ultimate artificial intelligence (AI) stock , thanks to its dominance with AI chips. As a result, Nvidia stock has risen sharply in recent years. In 2024 alone, the stock is up more than 70%. Competitors such as Advanced Micro Devices and Intel are trying to release ever better chips to compete with Nvidia and to push ahead of Nvidia in the market in the future.
NVIDIA Corp (NASDAQ-NVDA) created the CUDA parallel computing platform to make GPUs available for mainstream computers, and in recent years, Nvidia’s AI business has taken off. Today, Nvidia still serves the gaming industry, but its core AI revenue far exceeds its gaming revenue. In the most recent quarter, data center revenue, which includes the AI business, grew 400% to more than $18 billion, while gaming revenue grew 59% to $2.9 billion.
NVIDIA CEO Jensen Huang said: «Our strong growth reflects a significant transition from a standard trading platform, to a modern one, through powerful computing and generative artificial intelligence.» The company also said that startups in AI and global cloud services were early movers and more are starting to emerge. Countries are currently investing heavily in AI clouds and proprietary AI for automation across the world’s largest industries to meet demand in their country. According to Nvidia Corp, the AI era is taking off, with GPUs, NVIDIA processors, networking, AI services, foundries and NVIDIA AI Enterprise software being the company’s engines that are currently running at full throttle.
The Artificial Intelligence (AI) sector is rapidly evolving and AI technologies are transforming various industries including healthcare, automotive, finance, etc. Companies operating in this sector are developing AI to increase work efficiency in automating processes, creating new products and services.
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According to experienced Bernstein analyst, Stacy Rasgon, investors who are currently investing their funds in the stock just (NVDA) are particularly concerned about the sustainability of long-term growth, thanks to the strong share price growth. Among other things, Nvidia ( NVDA ) has far outpaced most of the market in terms of share price appreciation, rising over 240% in 12 months. NVIDIA Corp (NASDAQ-NVDA) also pays regular quarterly dividends to its shareholders. The dividend yield is currently 0.019% per annum and the actual dividend amount has been approved by the company’s general meeting of shareholders at $0.030 per share. The average target price for the short to medium term investment horizon has been set at US$1,005.59 per share.