In the ever-expanding realm of artificial intelligence (AI), Nvidia (NVDA) continues to make waves. While the first wave of buyers consisted of internet cloud service providers, a new group is emerging as potential buyers – sovereign nations. According to UBS analyst Timothy Arcuri, Nvidia is poised to meet the increasing demand from global enterprises and sovereigns alike. The scale of each sovereign’s potential demand is comparable to that of a large U.S. cloud customer.
During the GTC 2024 conference, Nvidia revealed that countries like Japan, Malaysia, South Korea, and Sweden are already customers of their AI systems. Furthermore, Arcuri mentions that the Middle East market, with Saudi Arabia and the United Arab Emirates at the forefront, is also likely to become a significant buyer. In addition to these nations, Nvidia is already engaged in major projects with Singapore, Switzerland, and France.
The positive news surrounding Nvidia has had a direct impact on their stock performance. Arcuri reaffirmed his buy rating on Nvidia stock and raised his price target from 800 to 1,000. The stock climbed 3% to reach 942.18 during afternoon trades on the stock market, marking its fifth consecutive day of upward movement.
Looking ahead, Arcuri predicts that Nvidia’s sales will reach a staggering $112.5 billion by 2024, reflecting a 94% increase from the previous year. Although FactSet analysts project sales of $105.6 billion for this year, Arcuri envisions another robust growth year in 2025, with revenue anticipated to approach $150 billion, representing a growth rate of around 30%. Wall Street’s sales estimate for 2023 stands at $131.5 billion.
With its continuous success, Nvidia’s stock has secured its position on five prominent IBD stock lists: IBD 50, Leaderboard, Big Cap 20, Sector Leaders, and Tech Leaders.
Frequently Asked Questions
-
What is Nvidia?
Nvidia is a technology company specializing in the development of graphics processing units (GPUs), AI systems, and other related technologies. -
What are sovereign nations?
Sovereign nations are independent political entities with defined territories and governments. They exercise their authority without interference from external powers. -
Why are sovereign nations becoming buyers of AI systems?
Sovereign nations are recognizing the potential benefits and applications of AI technology in various sectors, such as defense, healthcare, and infrastructure. Their interest in AI systems stems from the desire to stay competitive and enhance their capabilities.
Sources:
– [UBS analyst Timothy Arcuri](https://www.ubs.com/)
– [FactSet](https://www.factset.com/)
In the rapidly growing industry of artificial intelligence (AI), Nvidia continues to gain attention and expand its customer base. While initially attracting internet cloud service providers, a new group of potential buyers is emerging – sovereign nations. These nations, including Japan, Malaysia, South Korea, Sweden, Saudi Arabia, the United Arab Emirates, Singapore, Switzerland, and France, are already customers of Nvidia’s AI systems. Analyst Timothy Arcuri from UBS predicts that the Middle East market, led by Saudi Arabia and the UAE, will likely become significant buyers as well. The potential demand from each sovereign nation is comparable to that of a large U.S. cloud customer.
Nvidia’s positive performance and expanding customer base have had a direct impact on its stock price. Arcuri reaffirmed his buy rating on Nvidia stock and raised his price target to $1,000. As a result, the stock climbed 3% during afternoon trades, reaching $942.18 and continuing its upward trend for the fifth consecutive day.
Looking ahead, Arcuri forecasts substantial sales growth for Nvidia. He predicts that by 2024, Nvidia’s sales will reach an impressive $112.5 billion, reflecting a 94% increase from the previous year. While FactSet analysts project sales of $105.6 billion for this year, Arcuri anticipates another strong growth year in 2025, with revenue approaching $150 billion and a growth rate of around 30%. Wall Street’s sales estimate for 2023 stands at $131.5 billion.
Nvidia’s continuous success and promising future prospects have resulted in the company’s inclusion on five prominent IBD stock lists: IBD 50, Leaderboard, Big Cap 20, Sector Leaders, and Tech Leaders.
Frequently Asked Questions
-
What is Nvidia?
Nvidia is a technology company specializing in the development of graphics processing units (GPUs), AI systems, and other related technologies. -
What are sovereign nations?
Sovereign nations are independent political entities with defined territories and governments. They exercise their authority without interference from external powers. -
Why are sovereign nations becoming buyers of AI systems?
Sovereign nations are recognizing the potential benefits and applications of AI technology in various sectors, such as defense, healthcare, and infrastructure. Their interest in AI systems stems from the desire to stay competitive and enhance their capabilities.
Sources:
– UBS analyst Timothy Arcuri
– FactSet
The source of the article is from the blog exofeed.nl