Nvidia Corporation (NASDAQ: NVDA) stock has been through the wringer this year, and even the most recent announcements made by the chip giant at its fall GTC meeting didn’t help to move the needle on the shares. Nvidia is a graphic processing unit (GPU) manufacturer.
Nvidia Corporation Introduces New GPUs
NVIDIA Corporation has introduced the next-generation GeForce RTX 40 Series GPUs, driven by the Ada Lovelace architecture. In his keynote address, CEO Jensen Huang referred to the newly released GPU as a “quantum leap,” noting that it will enable content developers to construct fully simulated worlds.
The H100, based on the Hopper architecture and equipped with Hopper’s next-generation Transformer Engine, is currently in total production and will start shipping to original equipment manufacturers (OEMs) in October. The H100 is being marketed as the most potent AI-focused GPU the company has ever manufactured.
Huang also stated that the second-generation OVX systems are already in total production. These systems were developed to scale out metaverse applications and are scheduled to be powered by Ada Lovelace L40 data center GPUs.
This is merely a sample of everything else that is available. Yet, Wall Street’s lukewarm response may reflect the luster Nvidia Corporation Stock (NASDAQ: NVDA) has lost over the past year. Declining sales in the gaming industry, the anticipated loss of GPU revenue due to the Ethereum merge, and restrictions imposed by the United States government on exports of the H100 to China have all contributed to a deterioration in sentiment regarding what was once an unstoppable growth story.
But dismiss Nvidia Corporation at your own risk; if Hans Mosesmann of Rosenblatt is to be believed, the company has a bright future. The 5-star expert believes that Wall Street completely underestimates the seismic shifts that are currently taking place.
Mosesmann wrote with enthusiasm, “Ada Lovelace and the compute big brother Hopper are set to be the biggest GPU launches in the history of GPUs.” “We know that Wall Street is suffering from snakebite and may not be in the mood for all of the GTC great things that are pretty strategic. Much less has been assimilated regarding what Nvidia Corporation Stock (NASDAQ: NVDA) is doing with its Omniverse/AI thrust (cloud services, OVX computers, Enterprise S/W, Orin, and Thor, and the list could go on and on). However, we believe that investors who hold positions for a more extended period will be rewarded, just as they were in previous cycles.
The fact that Mosesmann has given the stock a Buy rating and set a price target that is far higher than the average on the market (at $320) of which indicates that he is optimistic about the company’s future.
Mosesmann is hardly the only analyst who has expressed optimism over NVDA. The stock has a split of 23 to 9 in favor of Buy recommendations over Holds evaluations, giving it a Moderate Buy rating due to the consensus. The current price of the shares is $132.61, and their average target price of $205.74 indicates an opportunity for a 55% increase in value over the next year.
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