Nvidia Corp. (NASDAQ-NVDA) has driven the market above the average of the trading indices in the first half of 2024. Currently, the company is poised to continue to drive the stock market in the second quarter as a leading title. The chipmaker’s shares have rocketed over the past five years, and that momentum continued for Nvidia in the first half of 2024, when its stock rose more than 150%. The biggest market trend in the first half of 2024 was clearly artificial intelligence (AI), and it wasn’t that long ago that AI was considered a nascent technology, and it certainly hit the global mainstream earlier this year when a number of tech companies began offering AI-based features in their products.
Nvidia Corp. (NASDAQ-NVDA) has created the CUDA parallel computing platform to make GPUs available for mainstream computers, and in recent years the AI business at Nvidia 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.
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 improve work efficiency in automating processes, creating new products and services. CEO of Nvidia Corp. Jensen Huang said last week : said the company’s advantage in AI chips was a bit of a lottery bet when it began investing billions of dollars in AI more than 10 years ago and had a team of thousands of engineers to develop it. The company split its stock 10-to-1 in June,surpassing its $3 trillion valuation and briefly achieving the status of the world’s most valuable company.
According to experienced Bernstein analyst, Stacy Rasgon, investors who are currently investing their funds in the stock just (NASDAQ-NVDA) are particularly concerned about the sustainability of long-term growth, thanks to the strong share price growth. Among other things, Nvidia 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 0.032% per annum and the actual dividend amount been approved by the company’s general meeting of shareholders at $0.010 per share. The average target price for the short to medium term investment horizon has been set at $135.09 per share.
Graph Source : www.tipranks.com
