Will Nvidia Stock Soar After June 24? The Evidence is Piling Up and Here's What It Shows
Nvidia stock has climbed in the quadruple digits in recent years.
Will Nvidia Stock Soar After June 24? The Evidence is Piling Up and Here's What It Shows
Overview
Investors hoping for an artificial intelligence (AI) win have flocked to Nvidia (NASDAQ: NVDA) in recent years, and it's proven to be a winning bet. The stock has climbed 1,000% over five years. The reason for such a move? Nvidia designs a product that's unavoidable for those running AI workloads: the AI chip. But this isn't just any AI chip. Nvidia's graphics processing units (GPUs) are the fastest around, and customers have rushed to gain access to them.
All of this has spurred tremendous growth for Nvidia. The company's revenue and net income have surged to record levels, finishing last year at $215 billion and $120 billion, respectively.
Details
But this year hasn't been a year of extraordinary stock market performance for Nvidia so far. AI stocks came under pressure in the first half amid concerns about the economy and turmoil in Iran. And some investors worried about mounting competition in the AI chip market -- even some of Nvidia's own customers, such as Amazon, are making some of their own AI chips. Though Nvidia's earnings reports have been strong, this hasn't been enough to supercharge the stock.
Source
Originally published at www.fool.com.
