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Is NVIDIA Stock Still a Good Buy Amid New AI Developments?

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Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
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NVIDIA Corporation’s stock likely received a boost from its AI breakthroughs in gaming, providing a competitive edge, further fueling investor enthusiasm. On Thursday, NVIDIA Corporation’s stocks have been trading up by 2.39 percent.

Impact of Recent Announcements:

  • The tech giants EQTY Lab, Intel, and NVIDIA have launched a trailblazing Verifiable Compute AI framework. This high-tech development brings new standards in AI safety by auditing and managing AI processes for enhanced explainability and compliance on a hardware level.

Candlestick Chart

Live Update At 09:18:48 EST: On Thursday, December 19, 2024 NVIDIA Corporation stock [NASDAQ: NVDA] is trending up by 2.39%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Truist has raised NVIDIA’s price target to $204, amidst the company’s growing dominance and expansion into a $35B market with a groundbreaking client-side CPU release scheduled for 2025. This has maintained a strong ‘Buy’ rating for investors.

  • NVIDIA introduced the Jetson Orin Nano Super computer, priced attractively at $249. This AI supercomputer offers a 1.7x boost in AI performance and 70% more INT8 TOPS, bridging the gap for hobbyists, commercial AI creators, and students to explore AI advancements without breaking the bank.

  • With a strategic partnership with Verizon, NVIDIA is preparing to supercharge AI capabilities on 5G networks, further embedding its technology into enterprise AI solutions through these new business alliances.

  • NVIDIA gear pickers, like Microsoft, are heavily investing in Hopper AI chips. Their purchasing patterns underscore NVIDIA’s leading role in AI, particularly as Microsoft overtakes other tech behemoths in snapping these up, promising further market growth.

Quick Financial Overview of NVIDIA’s Earnings Report:

The recent financial releases highlight NVIDIA’s remarkable growth and positioning in the semiconductor and AI technologies sector. The company reported a revenue of $60.9B, showing robust business strength supported by diversified revenue streams. As millionaire penny stock trader and teacher Tim Sykes, says, “Consistency is key in trading; don’t let emotions dictate your trades.” This philosophy reflects NVIDIA’s strategy as the EBIT margin stands impressively at 64.5%, reflecting operational efficiency and consistent management acumen.

NVIDIA’s financial backbone is solidified with gross margins of 75.9%, which stands as a testament to its ability to generate large revenues relative to the cost of goods sold. This plays into the hands of investors seeking stable returns without fearing loss margins.

The corporation maintains a manageable debt portfolio with a total debt-to-equity ratio of 0.15, balanced with a current ratio of 4.1, illustrating easily navigable financial obligations. Such numbers are not only sexy on financial sheets but comforting to potential investors’ nerves.

The investor confidence is further cemented by the expanding market implications based on NVIDIA’s prominent AI initiatives. With several partnerships and technology rollouts in the pipeline, NVIDIA’s trajectory seems far from plateauing. Operational cash flow remains strong at $17.6B, offering plenty of room for reinvestment into tech innovation.

Future Implications for the Market:

Unraveling the New AI Safety Standards:

The collaboration on the Verifiable Compute AI framework sets new competitive standards in AI oversight. Creating a secure, accountable, and transparent AI ecosystem could make NVIDIA an even stronger frontrunner in the AI field. The secure hardware offering is a nod to fears surrounding AI’s unfettered power and could set standards that competitors scramble to match as a future benchmark.

New Horizons in the Semiconductor Space:

NVIDIA’s expansion into the chip market aims to further entrench its leading position by tapping a $35B market space. The 2025 CPU introduction paints NVIDIA’s ambition in broad strokes across the tech skies. Whether it translates into higher market shares remains to be seen, but optimism isn’t just being seen through rose-colored lenses. Truist’s price target hike to $204 reflects faith in this strategy paying off against a future landscape where NVIDIA scalps greater share slices.

More Breaking News

From Chips to Cloud and Beyond:

Purchases of Hopper AI chips in bulk by tech giants like Microsoft solidify NVIDIA’s dominance in AI. This commitment by leading tech companies underscores NVIDIA’s invaluable technology. Such mass adoptions could rapidly elevate NVIDIA’s AI tech as a staple across the tech industry, possibly fortifying its endeavors into enterprise AI solutions, now intertwined further through the 5G roll-out with Verizon.

Examining Financial Forces:

The consistent growth numbers and the firm economic positioning underscore investor belief in NVIDIA’s continued operational success. The cash flow strength and debt management capacity play into potential stock buyback strategies or dividend increases, strengthening long-term shareholder value propositions.

Drawing the Curtain on NVIDIA’s Future Strides

In the dynamic world of tech valuations shaking and soaring with every new announcement, NVIDIA has displayed resilience and consistent innovation. With strategic partnerships and product advancements, it’s crafting not just chips but rather the technological futures these chips power every day. The investments and market dynamics align in harmony, hinting at blue skies ahead.

As hardware-based AI solutions and next-gen supercomputers rewrite what’s possible, NVIDIA seems more prepared than ever to leap over market walls. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” Considering the broadened $35B market, and industry praise, keep your eyes peeled for what upcoming quarters may unveil—a giant step or another inspired flight among tech’s high alchemy.

Crystallizing it into an actionable opportunity remains, however, the reader’s journey based on insights here; Is NVIDIA indeed your next tech cocktail trading target, or merely a coding dream?

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”