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Feb 27, 2024

Nvidia Stock: Future Outlook After 63% Surge in 2024

By: Bhumi Shrivastava

The company's fourth-quarter revenue soared by 265%, reaching $22.1 billion, thanks to sales of its GPUs for AI applications.

Impressive Earnings

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To maintain growth, Nvidia is investing $30 billion in a new unit for customized chips and focusing on software like DGX Cloud.

Diversification Strategy

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With the AI chip industry expected to reach $400 billion by 2027, Nvidia's expansion into new verticals seems timely.

Market Potential

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Despite its strong performance, Nvidia's stock trades at a reasonable valuation of 33 times forward earnings.

Valuation Consideration

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Investors may consider Nvidia a long-term buy due to its solid economic moat and expansion into lucrative markets.

Investment Opportunity

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While there are risks if the AI industry doesn't meet expectations, Nvidia's current trajectory suggests continued success.

Risks and Rewards

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