Prediction: Nvidia Stock Will Soar This Year (and It May Start After March 18)

Prediction: Nvidia Stock Will Soar This Year (and It May Start After March 18)

  • 17.03.2025 12:40
  • msn.com
  • Keywords: Nvidia, Stock Market, Artificial Intelligence

Nvidia stock is expected to rise this year, particularly after March 18, driven by upcoming AI product launches and sustained demand for its GPUs in the booming AI market. Despite recent declines, the company's innovation and profitability position it well for long-term growth.

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Nvidia

Nvidia

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Analyst rating: Strong buy

The article discusses Nvidia's stock performance and its role in the AI market.

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Analyst rating: N/A

Mentioned as a stock exchange where certain ETFs are traded.

Context

Analysis of Business Insights and Market Implications

Nvidia's Performance and Outlook

  • Nvidia (NASDAQ: NVDA) has experienced a 2,000% stock surge over the past five years, driven by its dominance in AI GPUs and expanding product portfolio.
  • The company holds an 80% GPU market share, with revenue growing at double/triple-digit rates. Last year alone, revenue surged 114% to $130 billion.
  • Nvidia's gross margin remains strong at over 70%, even during periods of higher expenses like the Blackwell architecture launch.

Market Context

  • The broader market has entered a correction phase, with the Nasdaq and S&P 500 down 10% from recent highs due to concerns about economic impacts.
  • Nvidia's stock has declined 12% over the past month, but analysts expect long-term AI growth to remain robust.

AI Growth and Market Expansion

  • The global AI market is projected to grow from $200 billion in 2023 to over $1 trillion by the end of the decade.
  • Nvidia is well-positioned to benefit as it provides tools and services across all phases of AI growth, including training and inferencing.

Competitive Landscape

  • Nvidia's innovation strategy includes annual GPU updates. The company recently launched Blackwell and plans to release Blackwell Ultra and Vera Rubin architectures later in 2024.
  • These product launches are expected to reassure investors about Nvidia's long-term growth potential.

Strategic Considerations

  • The upcoming GTC AI conference (March 18) is seen as a catalyst for stock momentum, with CEO Jensen Huang likely to discuss new products and performance metrics.
  • Nvidia's current valuation offers an attractive entry point, trading at 27x compared to its peak of 50 earlier in the year.

Investment Recommendations

  • The article highlights several ETFs recommended for long-term investors seeking opportunities post-selloff:
    • Betashares Asia Technology Tigers ETF: Exposure to Asian tech giants like Tencent and Alibaba.
    • Betashares Nasdaq 100 ETF: Includes exposure to Nvidia and Apple.
    • VanEck Morningstar Wide Moat ETF: Focuses on companies with strong competitive advantages, including Meta Platforms and Berkshire Hathaway.
    • BetaShares S&P/ASX Australian Technology ETF: Targets Australia's tech sector, including WiseTech Global and Xero.
    • Vanguard MSCI Index International Shares ETF: Offers broad international diversification across developed markets.

Long-Term Effects and Regulatory Impacts

  • While short-term concerns like tariffs may impact near-term performance, the long-term shift toward accelerated computing is expected to drive sustained growth for companies like Nvidia.
  • The article emphasizes the potential for significant returns by investing in high-growth opportunities during market corrections.