It seems Nvidia (Nasdaq: NVDA) He is a victim of his own success. After another stunning quarter in which earnings per share (EPS) doubled year over year, the chipmaker’s stock fell in the days following the release of its third-quarter numbers. The truth is that expectations could not be higher. It’s a good thing the company is still firing on all cylinders.
This is not the first time this has been the case, and it likely won’t be the last. Nvidia has seen its shares fall nearly 20% in the weeks following its latest release, gaining nearly 35% from that low. There is good reason to remain optimistic, as the coming year is full of major catalysts for the company.
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On Tuesday, December 3, Nvidia joined the other leading companies Artificial Intelligence (AI) Companies to discuss the future of the industry with the investment community. Annual UPS The World Technology and AI Conference is an opportunity for Nvidia to demonstrate continued leadership and show why it has come a long way. This event combines the technical and practical aspects, highlighting how artificial intelligence can create value in the real world.
While a single event is unlikely to change things, every opportunity for a company – and the industry, for that matter – has a chance to make its case matter. Here are three reasons to buy Nvidia as the event gets underway.
Look, this isn’t news, but it bears repeating: the AI market is huge, growing rapidly, and there’s good reason to believe this will continue. PricewaterhouseCoopers – one of the “Big Four” accounting firms – believes that AI could add $15.7 trillion to the global economy by 2030. Statista projects a compound annual growth rate (CAGR) for the total AI market of 28.3% through 2030.
Analysts and speakers are not the only ones who think so; CEOs from across Silicon Valley have reiterated their commitment to AI and, more importantly, to spending billions of dollars on AI infrastructure. in deadThe last Earnings callCEO Mark Zuckerberg said that despite record capital expenditures, his company “should invest more” because AI “will accelerate the core business (meta)” and “should deliver a strong return on investment over the next few years.”
This is great news for Nvidia. The company’s chips supply the vast majority of the industry, and this market dominance is expected to continue for the foreseeable future. At this point, not even AMD It could offer a chip that matches the performance of Nvidia’s flagship chipsets. While this lead will likely shrink over time, it is doubtful that Nvidia will outperform. Nvidia has vast resources – both capital and talent – that it can use to defend its leadership position.
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