Why Smart Money are Betting Big on Nvidia | NVDA

Nvidia’s success prior to the AI hype of 2023 was rooted in its leadership in the design of discrete graphics processing units. However, Wall Street has steadily increased its expectations for Nvidia as it recognizes the immense potential of AI and the crucial role that Nvidia plays in the industry. This shift in sentiment has been a driving force behind the surge in Nvidia’s stock price. The company’s stock has experienced a spectacular rise in 6 months, with gains of almost 190%.

The impressive performance of Nvidia’s accelerated computing platform is translating into a boon for earnings. Analysts anticipate that Nvidia’s sales in the second quarter will surpass the $10 billion mark. Besides, the market predicts that the company’s earnings per share will quadruple within the next 18 months. The projected earnings growth rate for next year stands at above 25%, with a further increase of 28% expected in 2026. These estimates underscore the robust financial prospects for Nvidia.

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