There goes Nvidia (NVDA).
As hoped, the stock broke above resistance dating back to April 2022, and now trades at $231.90 a share. From here, we’d like to see NVDA test $300. All after the company posted strong earnings growth with EPS of 88 cents, as compared to expectations for 81 cents. Revenue came in at $6.05 billion, which was better than estimates for $6.02 billion.
Even better, it sees revenue with a midpoint of $6.5 billion in the first quarter. That puts it above estimates for $6.31 billion. Oppenheimer analysts raised their price target on NVDA to $275 from $250, as a result. “Piper Sandler analysts also raised their price target to $275 from $225 and said Nvidia seemed to be through the bottoming process in its gaming segment. They also noted that AI opportunities will drive new growth,” as noted by Barron’s.
And, we have to consider that AI will be a big catalyst moving forward. Growing fast, Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. Just look at what’s been happening lately.
OpenAI just released ChatGPT, a free chatbot that’s become wildly popular. For one, according to Medium.com, “One of the primary reasons ChatGPT is disruptive is that it represents a significant advancement in the ability of AI systems to understand and generate human-like text.” Two, “it has the potential to revolutionize the way we interact with AI.”
Even the White House has taken notice. In fact, just days ago, the White House and the European Union agreed to work together to develop new AI tools.
Again, all could be a powerful catalyst for Nvidia.