Nvidia (NASDAQ:NVDA) stock had an outstanding year in 2023, gaining approximately 239% thanks to strong demand for its GPUs powering AI computing. The positive trend has continued into 2024, with the stock already up 74% year-to-date, driven by its platform for generative AI applications.
Despite the significant gains, one Wall Street analyst is bullish on Nvidia, expecting the stock to hit $1,400 within the next year, which would be a new high and represents a 62% upside from Tuesday’s close.
Nvidia’s Q4 earnings were impressive, with revenue reaching $22.1 billion, up 22% sequentially and 265% year-on-year. The data center revenue set a new record, reaching $18.4 billion, up 27% sequentially and 409% year-over-year, driven by the NVIDIA Hopper GPU computing platform and InfiniBand networking.
For fiscal year 2024, Nvidia’s revenue was $60.9 billion, up 126% from the prior year, with data center revenue at $47.5 billion, more than tripling from the previous year. The company’s exponential growth throughout the fiscal year, especially in AI-led demand, highlights its competitive edge in the data center business.
Nvidia’s H200 AI chips, designed for generative AI and high-performance computing tasks, are already in high demand. The company expects to ramp up shipments in the second quarter of the current year. The H200 chips, with advanced memory capabilities, are seen as a game-changer in the AI and accelerated computing space.
Looking ahead, Nvidia sees significant growth opportunities in AI solutions across industries. The company’s leadership in PC gaming, workstation graphics, and autonomous vehicles, among other sectors, positions it well for future growth. The launch of the RTX 40 Super Series family of GPUs is expected to further boost sales.
Nvidia’s solid balance sheet, with approximately $26 billion in cash, cash equivalents, and marketable securities, provides further support for its growth plans. The company’s focus on returning cash to shareholders through share repurchases also underscores its confidence in future earnings.
With a bullish outlook from analysts and a new Street-high price target of $1,400, Nvidia appears poised for continued success in the AI and computing space.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf