Analysts expect Nvidia's brisk sales of data
center GPUs, along with the gradual recovery of its gaming business, to boost
its full-year revenue and adjusted earnings by 61% and 138%, respectively, in
So, Wall Street analyst estimates just pushed next
year's topline revenue another $2 billion higher to $57B in the past few weeks
-- representing 33.7% growth.
That would represent a stunning acceleration
from Nvidia's flat revenue growth and 25% decline in adjusted earnings in
Nvidia's near-term gains might be limited,
but it could potentially double its share price again over the next few years
if it remains the preferred chipmaker of the generative AI market.
Why the NVDA Weekly
Options Trade was Originally Executed!
NVIDIA Corporation (NASDAQ:NVDA), a giant
in data centers and gaming, continues to storm ahead. The chip giant is seen as
one of the biggest winners of the AI boom.
tech industry's fierce battle for AI dominance, the advanced chips needed for
generative AI, such as the ChatGPT chatbot, are key.
delivered annual revenue of $4.3 billion in fiscal 2013 (which ended in January
2013 and coincided largely with calendar year 2012). By fiscal 2023, which
ended in January of this year, Nvidia's annual revenue increased to $27
billion. The chipmaker's revenue has increased over 6 times over the past
part is that the chipmaker is expected to sustain its terrific revenue growth
in the future as well.
The NVDA Weekly
Options Trade Explained.....
** OPTION TRADE: Buy NVDA AUG 11 2023 460.000 CALLS - price at last close was $6.00 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the NVDA Weekly Options (CALL) Trade on Friday, August 04, 2023, at 10.06, for $4.95.
Sold half the NVDA weekly options contracts on Friday, August 04, 2023, at 12:46, for $7.50; a potential profit of 52%.
Holding the remaining NVDA weekly options contracts
for further profit
due to an expected surge after reporting positive earnings.
Don’t miss out on further trades – become a
Further Catalysts for the NVDA Weekly Options Trade…..
Nvidia Chief Executive Jensen Huang announced a new supercomputer, software and
services for generative AI (artificial intelligence). Generative AI can create
content, including written articles, from simple descriptive phrases by
analyzing and digesting vast amounts of data. It can also write computer
latest quarter, graphics-chip maker Nvidia crushed Wall Street's targets on
record data-center sales. Production is ramping up to meet huge demand for AI
technology, CEO Huang said.
On May 24,
the chip giant delivered a big beat-and-raise report. The Nvidia earnings
report included a bullish, AI-fueled sales forecast.
Clara, Calif.-based company earned $1.09 a share on sales of $7.19 billion in
the quarter ended April 30. Year over year, Nvidia earnings dropped 20% while
sales fell 13%. But the results easily outpaced Wall Street's expectations.
data-center sales rose 14% to $4.28 billion. Gaming-chip sales fell 38% to
expect Nvidia earnings per share to rebound 138% in fiscal 2024, on a 61% sales
gain. Last year, Nvidia earnings fell 25%.
quarterly report is expected on Aug. 23.
revenue is expected to jump 2.6 times over the next three fiscal years when
compared to its fiscal 2023 revenue, clocking a compound annual growth rate
(CAGR) of 38%.
fundamental level, Nvidia earnings are expected to return to growth. They
should more than double this fiscal year, driven by booming chip sales for data
centers and artificial intelligence.
chipmaker is expanding in other growth areas such as automated electric cars
and cloud gaming as well. The adoption of the metaverse and cryptocurrencies
could further stoke demand for Nvidia chips.
cloud provider CoreWeave has raised $2.3 billion in a debt facility led by
Magnetar Capital and Blackstone and collateralized by Nvidia chips, with the
funds to be used to expand to meet rising AI workload, the company said on
CoreWeave has seen a boost from the generative AI boom thanks to its
purpose-built cloud infrastructure at scale. It has partnerships with AI
startups and cloud providers, which it also competes with, to build clusters to
power AI workload.
has unique access to the most advanced Nvidia chips that are in short supply,
giving it an edge in competition with traditional cloud providers like
Microsoft, Amazon and Google, which are facing supply restraints while working
on developing their own chips.
Seventy percent of Nvidia's revenue opportunity will come from selling
chips for various applications, and the good part is that the company dominates
those segments. For instance, the company controls 84% of the market for gaming
graphics processing units (GPUs), according to Jon Peddie Research. It already
cornered a big chunk of the nascent cloud-gaming market as well, which has the
potential to substantially boost its growth in the future.
Meanwhile, the company is also making solid progress in the automotive
market by quickly building up a nice revenue pipeline.
In terms of data center chips, Nvidia sees a $300 billion revenue
opportunity in enterprise and high-performance computing. AI is going to play a
key role in this segment's growth, driven by the need for chips to train AI
models and for running inference applications as well. Precedence Research
estimates that the AI chip market could generate annual revenue of almost $230
billion in 2032, up from just under $17 billion last year.
Securities analyst Vijay Rakesh is quite upbeat about Nvidia's prospects in the
market for AI chips, pointing out that the company could generate $300 billion
in AI-specific revenue by 2027 even if its share of this market dips to 75%.
According to the issued ratings of 38 analysts in the last
year, the consensus rating for NVIDIA stock is Moderate Buy based on the
current 1 sell rating, 5 hold ratings, 31 buy ratings and 1 strong buy rating
for NVDA. The average twelve-month price prediction for NVIDIA is $425.00 with
a high price target of $600.00 and a low price target of $185.00.
Nvidia's revenue has increased
sixfold in the past 10 years, and there is a chance that it may grow at a
faster pace in the coming decade.
The semiconductor specialist evolved
significantly over the past 10 years. From being a supplier of graphics
processors for personal computers (PCs) and smartphones a decade ago, Nvidia
expanded its wings into multiple high-growth markets such as automotive, data
centers, cloud computing, artificial intelligence (AI), digital twins, and
As a result, it won't be surprising
to see Nvidia replicate its outstanding run on the stock market over the coming
years as well.
Nvidia has a five-year average
price-to-sales ratio of 18.4. Assuming that multiple drops down to 10 after a
decade, the company's market cap could jump to $2.5 trillion over the next 10
years based on revenue projections. That would be more than double Nvidia's
current market cap. However, it won't be surprising to see this semiconductor
stock deliver an even bigger upside since it could grow at a faster pace thanks
to the trillion-dollar revenue opportunity it is sitting on.