Investors continue to have high hopes for Nvidia in 2024 as the company’s momentum shows no signs of slowing down. Despite an impressive run in 2023, experts believe that Nvidia can maintain its growth cycle if it fulfills its promises to investors. This optimism stems from the soaring demand for artificial intelligence (AI), which has propelled Nvidia’s success in recent years.
Notably, Nvidia’s graphics processing units (GPUs) have become crucial in powering the latest and most advanced large language models, igniting investor interest and leading to a 239% surge in the company’s shares. Nvidia has consistently exceeded expectations, surpassing estimates due to the sustained demand for its products driven by AI. As a result, Wall Street has showered Nvidia with praise, with analysts increasing their price targets and ranking it among their top AI picks. This exceptional performance has led many to compare it to the revolutionary impact of the iPhone on the smartphone market.
Industry insiders recognize that Nvidia’s success in AI was not a stroke of luck but rather the result of strategic positioning over the years. Nvidia’s readiness to capitalize on AI before it dominated the Wall Street narrative has given the company a significant advantage. Analyst Karl Freund points out that while other innovations in the tech industry have caused hype, Nvidia’s preparation for the AI boom sets it apart.
Looking forward, the focus shifts to 2024 and the continued growth of Nvidia. Many investors believe that the company’s shares will continue to rise as long as Nvidia can exceed expectations and provide favorable guidance. Currently, the consensus price target implies a further 35% upside for Nvidia shares.
However, concerns about a potential bubble in the AI industry have emerged. Similar to the dotcom bubble of the early 2000s, there are fears that unprofitable technology may face a significant setback in the future. Tech investor Paul Meeks anticipates a similar phenomenon in 2025, with 2024 being a year devoted to training large language models and introducing new applications.
Despite the emergence of competitors in the AI chip market, such as Advanced Micro Devices, Intel, and Amazon’s AWS cloud unit, Nvidia’s market dominance remains unchallenged. While these alternatives may carve out their niche, Nvidia’s sustained success and stronghold on the industry are unmatched. The key question for investors now is what lies ahead in 2025, which will depend on updates from Nvidia’s annual GTC conference in March and the progress made by competitors in reducing the costs of inferencing.
In conclusion, Nvidia’s impressive run in 2023 has set the stage for continued growth and optimism in 2024. As long as the company can deliver on its commitments and outperform expectations, investors remain confident that Nvidia’s momentum will persist. The coming years will test Nvidia’s ability to sustain its position at the forefront of AI technology, but for now, the future looks bright for this innovative powerhouse.
The source of the article is from the blog toumai.es