by winston » Wed Jun 05, 2019 8:45 pm
not vested
The Booming Artificial Intelligence Market Is Driving This Stock’s Resurgence
Nvidia Corp. (NASDAQ: NVDA) has enjoyed fantastic success in recent years: Its sales more than doubled from $5 billion in 2016 to $12 billion in the last fiscal year.
But as sales are projected to slip this year – down to $11 billion – Wall Street has retreated from the stock. Shares have fallen from $280 last September to less than half that now.
This was a massive overreaction. For one thing, sales and earnings growth are projected to pick up again next year. And Nvidia is locked in on several of the most profitable trends in the world today.
Look at its dominance in artificial intelligence chips, to start. Nvidia holds 75% share of a market that’s set to grow more than 50% annually, from $4.27 billion in 2018 to $34.3 billion in 2023.
Nvidia is adapting those chips for the specific needs of multiple industries, too. That’s how it has become a major player in the self-driving vehicle industry. Nvidia has partnered with big automakers like Toyota Motors Corp. (NYSE: TM) and Daimler AG (OTCMKTS: DMLRY), among others, to accelerate the move toward a world with zero car accidents.
The company’s AI chips are also used in urban camera networks to facilitate better city planning. They are used in healthcare for medical imaging, analytics, drug testing, and more. And they are used in supply chains to boost productivity and get products into customers’ hands more quickly.
It’s hard to believe that just a few years ago Nvidia was known mostly for its video game graphics cards. And even with its new ventures, it hasn’t set aside that $140 billion market. It’s still making the best gaming chips out there, and it’s leading the way in virtual reality for gamers.
“By buying shares before Wall Street wakes up to the great AI and supercomputing story here, you are setting yourself up for very profitable long-term holding .”
As of now, NVDA shares have dipped to $136. So it’s just about time to pull the trigger on that recommendation.
Source: Daily Trade Alert
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