Nvidia (NASDAQ:NVDA) stock has managed to climb nearly 20% over the past month. It’s time to pick up Nvidia shares while they are still selling at a discount. Currently trading in the $280 range, that may not sound cheap, but shares are still off more than 20% from their November 2021 all-time high close of $333.76.
Given the way this company’s business is going — and the projections for future growth — you’re liable to be kicking yourself if you don’t pick up shares at current prices.
Here are the reasons why NVDA stock has nowhere to go but up.
Nvidia’s Current Business Is Going Strong
Going back to February, Nvidia reported its Q4 and full-year fiscal 2022 results. The company reported record quarterly revenue (up 53% year-over-year) and record annual revenue (up 61% YoY). The company’s Gaming, Data Center and Professional Visualization divisions each reported record quarterly and annual revenue. Adjusted earnings-per-share of $1.32 topped the $1.22 analysts were expecting.
Nvidia’s CEO summed up the performance and what’s coming: “We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for NVIDIA computing.”
The mention of GTC is very important. Because what Nvidia revealed at that conference (which wrapped up last week), will make last year’s record $26.91 billion seem quaint.
Nvidia At GTC 2022
I’ve already written about the massive opportunity the metaverse represents for Nvidia, and for NVDA stock’s growth. That was before GTC 2022.
Nvidia’s GTC 2022 (Graphics Technology Conference) took place from March 21 through March 24. At the event, Nvidia showed off its latest new products and laid out a plan for the future that has investors drooling.
Among the key announcements were new Hopper architecture for its data center AI systems. These Hopper chips will power the Eos supercomputer, which is expected to be the world’s fastest AI supercomputer when it begins operations later in 2022. Its projected 18.4 exaflops of AI computing performance would make it four times faster than the current champion, Japan’s Fugaku supercomputer. Hopper is expected to be commercially available in the first half of 2023.
Joining Hopper is Grace, a new GPU superchip for the data center market. This new chip will also hit the market in the first half of 2023. Nvidia’s new DRIVE Hyperion 9 driving platform architecture arrives in 2026, doubling the performance of the current DRIVE Orin-based architecture. In addition, Nvidia is releasing a new Isaac Nova Orin platform for autonomous robotics.
What about the metaverse? While pushing its own Omniverse as a solution for creating massive, ultra-realistic simulations, Nvidia is making it available to a wider audience. The company’s new Omniverse Cloud eliminates the need for a PC with an RTX graphics card.
The company also announced six new RTX series GPUs. These are aimed at gaming PCs and laptops, as well as professional and creative markets.
Why is all this a big deal for NVDA stock growth? A long-term addressable market of $100 billion for gaming, $300 billion for software (including Omniverse), $300 billion for chips and systems and $300 billion for automotive.
You can see why 2021’s record revenue of $26.91 billion suddenly seems like it leaves Nvidia with plenty of runway for growth.
Bottom Line on NVDA Stock
With an “A” rating in Portfolio Grader, NVDA stock is a strong buy. I’m far from the only one who feels this way. The investment analysts polled by the Wall Street Journal give NVDA a consensus “overweight” rating. If shares hit their average price target of $343.47, that’s an upside in the range of 25%. And that takes us to just before those new Hopper and Grace chips are expected to start shipping.
Nvidia has been a powerhouse stock for the past six years. Its biggest crisis came in 2018 when the crypto market crashed and took demand for graphics cards with it. However, NVDA stock quickly came roaring back with more momentum than ever. Even a global pandemic, semiconductor shortages and supply chain disruption weren’t enough to knock NVDA off its growth trajectory. From the worst of the crypto crash fallout in December 2018 to November 19, 2021, NVDA delivered virtually nonstop growth and a return of over 900%.
Since then, macroeconomic factors that have resulted in a broad market pullback — hitting tech stocks especially hard — have done some damage. NVDA stock appears to have shaken off the doubts and has been rallying for the past two weeks. At this point it is down just 9% from the start of the year. Now it’s going in the right direction once again, but still nicely discounted compared to its November 2021 all-time highs.
It’s time to make a move.
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Originally published on InvestorPlace.com
On the date of publication, Louis Navellier had a long position in NVDA. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
