The Story :
NVIDIA. The leading graphic card designers have been in the news for a long time, and we can't ignore how Jensen has impacted the graphics, gaming, and AI industry. NVIDIA's shares NASDAQ: NVDA jumped by 6.2% in the afternoon when the market was about to close.
The boost in NVIDIA shares undoubtedly shows how valuable and important the AI chips are for the future and the bigger impact the world will have with them.
But don't take just our word for it - during the Q1 of 2024, Meta raised and invested in their AI technology creating an AI bot - the Meta AI. The Meta AI is nothing but a product of Llama 3 LLM (Large Language Model). Many think it is a hard competitor of Chat-GPT offering features of DALL-E for free!
But why we are telling you all this? And how this all is related to NVIDIA??
The servers needed to run such LLMs need an AI-powered GPU - and that's where NVIDIA comes in. Creating a GPU that is future secure - NVIDIA created a technology that is way ahead of its time and making it a company that doesn't just do anything for the sake of it.
Alphabet, a Google's share quoted "You can see that from the increases in our capital expenditures. This will fuel growth in the cloud and help us push the frontiers of AI models."
Honestly, we don't find a point where NVIDIA does not seem like a company that is worth losing. Stick to it, this share can give you loads of profits!
Market and Trend Analysis :
Of course, we say the share is profitable but one thing we should not undermine is the shares are volatile. Data says NVIDIA shares had 10 moves treated more than 5%. Seems profitable?
But the big move was made just a week ago when the company dropped by 10%.
Also, the tension between Israel and Iran is a major concern among investors. This adds up to ongoing inflation after the March 2024 CPI reports revealing it to be slightly hotter than expected.
CPI or Consumer Price Index is a gauge of the average price consumers pay for goods and services.
According to us, the driver of a stock's current value is the sum of its future cash flows discounted back to today. With lower interest rates, the investor expects a higher valuation of the funds invested. During times like this, it's best to own only high-quality companies with better cash flow to boat better in ups and downs in the market.
NVIDIA is up 82.3% from the start of the year showing a value of $877.42 per share to close at $950.02 at the end of March 2024. This means investors who bought $1,000 worth of NVIDIA shares 5 years ago could have $19,723 by now.
So that was all the information about the NVIDIA shares touching the sky. For more easy-to-read articles, do yourself a favor and get added to our email list to get Savvy Everyday!
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