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NVIDIA (NVDA) Up 243% YTD: Will It Carry Momentum in 2024?
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NVIDIA Corporation (NVDA - Free Report) has witnessed a remarkable run, showcasing a staggering 243% year-to-date surge in its stock price, pushing the company to the forefront of technology and innovation. NVIDIA also achieved a massive milestone in May 2023 by joining the exclusive club of companies with a $1 trillion market capitalization.
The surge reflects investors' confidence in NVIDIA's strategic positioning, robust financial performance and pivotal role in shaping transformative technologies like artificial intelligence (AI), gaming and data center solutions.
However, the looming question remains — Can NVIDIA sustain this momentum through 2024?
NVIDIA’s robust stock price performance has been primarily driven by hopes that the company will be a prime beneficiary of growing investments in generative AI. Given generative AI’s inherited opportunities and the company’s leadership in the space, we believe the NVDA stock is poised to carry the momentum in 2024.
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end market, NVDA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Additionally, NVIDIA currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks in the $1T Club
Apart from NVIDIA, only four companies — Apple Inc. (AAPL - Free Report) , Microsoft Corporation (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Amazon.com, Inc. (AMZN - Free Report) — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. At yesterday’s closing price of $500.77, NVDA has a market capitalization of $1.23 trillion, positioning it in the fifth spot.
Shares of Apple, Microsoft, Alphabet and Amazon have rallied 50.7%, 55.4%, 53.9% and 83.2%, respectively, year to date. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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NVIDIA (NVDA) Up 243% YTD: Will It Carry Momentum in 2024?
NVIDIA Corporation (NVDA - Free Report) has witnessed a remarkable run, showcasing a staggering 243% year-to-date surge in its stock price, pushing the company to the forefront of technology and innovation. NVIDIA also achieved a massive milestone in May 2023 by joining the exclusive club of companies with a $1 trillion market capitalization.
The surge reflects investors' confidence in NVIDIA's strategic positioning, robust financial performance and pivotal role in shaping transformative technologies like artificial intelligence (AI), gaming and data center solutions.
However, the looming question remains — Can NVIDIA sustain this momentum through 2024?
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
Will GenAI Investments Aid NVDA’s Surge?
NVIDIA’s robust stock price performance has been primarily driven by hopes that the company will be a prime beneficiary of growing investments in generative AI. Given generative AI’s inherited opportunities and the company’s leadership in the space, we believe the NVDA stock is poised to carry the momentum in 2024.
NVIDIA dominates the market for AI chips. The meteoric rise of OpenAI’s ChatGPT and its adoption among enterprises have already proven generative AI technology’s usefulness across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $109.37 billion by 2030, according to a new report by Grand View Research. The market is expected to expand at a CAGR of 35.6% from 2023 to 2030.
However, generative AI requires vast knowledge to create content and needs huge computational power. As a result, enterprises looking to create generative AI-based applications will be required to upgrade their existing network infrastructure.
NVIDIA’s next-generation chips with high computing power can be the top choice for enterprises. The company’s GPUs are already being applied in AI models. This is expanding NVDA’s footprint in untapped markets like automotive, healthcare and manufacturing.
The generative AI revolution is likely to create huge demand for its next-generation high computing powerful chips. Considering surging AI investments across the data center end market, NVDA expects its fourth-quarter fiscal 2024 revenues to reach $20 billion from $6.05 billion in the year-ago quarter.
Additionally, NVIDIA currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or #2 offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Other Stocks in the $1T Club
Apart from NVIDIA, only four companies — Apple Inc. (AAPL - Free Report) , Microsoft Corporation (MSFT - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Amazon.com, Inc. (AMZN - Free Report) — have a market cap of more than $1 trillion at present. AAPL has the highest market cap of $3.05 trillion, followed by MSFT’s $2.77 trillion, GOOGL’s $1.71 trillion and AMZN’s $1.59 trillion. At yesterday’s closing price of $500.77, NVDA has a market capitalization of $1.23 trillion, positioning it in the fifth spot.
Shares of Apple, Microsoft, Alphabet and Amazon have rallied 50.7%, 55.4%, 53.9% and 83.2%, respectively, year to date. Currently, AMZN sports a Zacks Rank #1, while AAPL, MSFT and GOOGL each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.