#1 - NVIDIA (NASDAQ:NVDA)
We’ll start this list with NVIDIA Corp. (NASDAQ: NVDA) and acknowledge that the stock has a high valuation. A price-to-earnings (P/E) ratio of over 78x may be significant for traders, but it shouldn’t matter much to investors who want to take a long position in NVDA stock.
NVIDIA makes graphic processing units (GPUs), chipsets and related multimedia software. The company’s GPUs have been driving the outsized growth because of the essential role they play in artificial intelligence (AI) applications.
In fact, the demand for faster speed and performance outpaces NVIDIA’s ability to produce chips. But the good news for investors is that the same can be said of NVIDIA’s competition.
This space is likely to become very crowded over the next 10 years. However, demand still in its early stages. That means investors shouldn’t be concerned about NVIDIA’s ability to maintain and grow market share and profit margins. Investors should also note that the company has a solid balance sheet and has started to buy back its shares which should help boost shareholder value.
About NVIDIA
NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications.
Read More - Current Price
- $132.65
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 39 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $142.10 (7.1% Upside)
