Nvidia (NASDAQ:NVDA), a fast-growing semiconductor innovator, has been a star for the past few years. NVDA shares have gained momentum and are one of the hottest stocks on the market today.
The company’s shares have grown by more than 700% since 2019 and generated high returns for investors. From about $ 60 in March 2020, it rose to $ 130 in August of the same year and has risen from that level since February 2021.
In July 2021, it temporarily peaked at $ 200, then climbed to $ 346 in November 2021. However, NVDA shares have since fallen from their highs and are currently trading at $ 269.
Nvidia has fallen more than 20% since recent highs and has yet to recover. This dip is a great opportunity to own this hot tech stock.
Nvidia could rule this decade
Nvidia, an exciting company in the semiconductor industry, has shown tremendous growth over the past few years. It consistently manufactures chips using next-generation technologies such as data analysis and artificial intelligence (AI) development.
Nvidia has set the gold standard for chip makers and the story of the company’s growth is nothing short of remarkable. It enjoys a strong position in the industry and has a large share of the graphics processing unit (GPU) market.
Demand for Nvidia GPUs is growing exponentially, which in turn supports the company’s huge portfolio. It is known for reporting exceptional revenue every quarter and consistently exceeding analysts ’estimates. The results in the fourth quarter could be huge for the company and return NVDA shares to previous highs.
It’s Nvidia dominate the GPU market without close competitors. If the company manages to manage its position in the coming years, it could be a share of the decade. He has already made strong strides with his platform in the cloud, GeForce now. The program allows players to use high speed and the latest technology in enterprise graphics processors with their computer without having a physical graphics card.
Nvidia has become part of several industries, including gambling, autonomous driving, data centers, cryptocurrencies, and artificial intelligence. It is aimed at some of the largest customers in the industry, and as their revenue grows, so will Nvidia’s revenue.
What analysts say about NVDA shares
The current fall in NVDA shares is a good opportunity to add it to your portfolio. Despite the withdrawal, the stock is a hot buy and the company has a market value of $ 670 billion.
This is one stock that will only win in the coming months. Much work is in favor of Nvidia and this will continue to be reflected in the results.
Citi analyst Atif Malik put NVDA on a “clock with positive catalyst.” The analyst believes that the strong holiday season and the expected improvements in the offer in the gaming segment will act as a catalyst for the company.
In addition, Bank of America analyst Vivek Arya has purchase estimate per share with a target price of $ 375. The analyst is confident in Nvidia’s momentum in data centers and games. Arya believes the company is capable of addressing “opportunities for global growth.”
Bottom Line on NVDA shares
This is a stock for a decade. I believe that the higher valuation of NVDA shares is based on the company’s high expectations.
The strength and growth potential of the company will certainly lead to higher revenue and profit growth. Overall, NVDA shares are a solid investment that can generate significant results for investors in the long run.
Vandita Jadeja did not have (directly or indirectly) any positions in the securities mentioned in this article on the day of publication. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.
Vandita Jadeja is a CPA and freelance financial songwriter who enjoys reading and writing about stocks. He believes in shopping and holding on to long-term profits. Her knowledge of words and numbers helps her write a clear stock analysis.