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Feb 27, 2024
By: Bhumi Shrivastava
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The company's fourth-quarter revenue soared by 265%, reaching $22.1 billion, thanks to sales of its GPUs for AI applications.
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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.
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With the AI chip industry expected to reach $400 billion by 2027, Nvidia's expansion into new verticals seems timely.
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Despite its strong performance, Nvidia's stock trades at a reasonable valuation of 33 times forward earnings.
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Investors may consider Nvidia a long-term buy due to its solid economic moat and expansion into lucrative markets.
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While there are risks if the AI industry doesn't meet expectations, Nvidia's current trajectory suggests continued success.
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