Is Nvidia Stock a Buy?
Nvidia (NASDAQ: NVDA) won over Wall Street last year, illustrated by its more than 280% stock growth since March 2023. The company's years of dominance in graphics processing units (GPUs) perfectly positioned it to profit significantly from a boom in artificial intelligence (AI) as demand for the chips skyrocketed. As a result, Nvidia's quarterly revenue and free cash flow are up 207% and 430%, respectively, in the last 12 months.
The company's meteoric rise has some analysts questioning whether the company has much more to offer investors in 2024. However, trends in the chip market indicate Nvidia will have little problem retaining its leading market share in AI GPUs, despite new offerings from Advanced Micro Devices and Intel.
Meanwhile, the AI market is nowhere near hitting its ceiling. It's projected to expand at a compound annual growth rate of 37% until at least 2030. The sector's potential indicates GPU demand is likely to continue rising for the foreseeable future, with Nvidia well-equipped to continue enjoying significant gains from AI.
Source Fool.com
