Is Nvidia stock a buy after more than doubling in 2023?

Is it a right company to invest in today

Let us discuss that

Nvidia shares are up 115.8% in 2023 after crashing in 2022

Is it still have potential to go up?

What Does Nvidia Do

Nvidia Corporation is a technology company.

It known for designing and manufacturing graphics processing units (GPUs).

Nvidia is expected to benefit from the proliferation of AI.

Nvidia (NASDAQ:NVDA) stock soar 27% on 25 May 2023

AI is only in its beginning stages

Game Plan

Nvidia  chips are being used in data centers and gaming companies

The plan includes partnerships and new products.

In March 2023, Nvidia announced various initiatives to broaden its reach in AI.

Nvidia Financial Snapshot

Stronger-than-expected forecast for the first-quarter earnings for its fiscal 2024  

Nvidia CEO Jensen Huang said the company was seeing “surging demand” for its data center products

Nvidia Segment Revenue beats analyst expectation

Nvidia’s data center group reported $4.28 billion in sales, versus expectations of $3.9 billion, a 14% annual increase. 

Nvidia’s gaming division reported a 38% drop in revenue to $2.24 billion in sales.

Large consumer internet companies use Nvidia chips to train and deploy generative AI applications like OpenAI’s ChatGPT.

Nvidia Share Technical Parameters

 EPS: $1.09, adjusted

Revenue: $7.19 billion

Mkt Cap US$963 B

P/E is 223.82 which is high

Global AI Chip Market

AI chip market is expected to generate over $227 billion in annual revenue by 2032

From the current value at USD 6.86 billion in 2022 with a CAGR of 30% during this period

AI chips are becoming increasingly important for cloud providers and data centre

What will drive the stock price

The boom in artificial intelligence chatbots has been on the rise

The boom chatGPT and other such AI tools has led to a sharp rise in demand for artificial intelligence semiconductors.

What will drive the stock price

AI chip market is yet to reach its full potential. 

There is lot of market potential for Nvidia to capture worldwide.

With AI chips growth opportunity, Nvidia is likely to get significant benefits. 

One can invest in Nvidia Stock for long term at dip

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