The AI story is booming.
Just look at Nvidia (NVDA).
The stock is up more than $28 a share on a volume spike of 84.5 million, as compared to daily average volume of 45.8 million. All thanks to earnings, and its outlook on AI. In fact, there’s so much excitement, we wouldn’t be shocked to see NVDA at $300 this year.
With regards to earnings, the company posted EPS of 88 cents, as compared to expectations for 81 cents. Revenue came in at $6.05 billion, which was better than estimates for $6.02 billion.
Even better, it sees revenue with a midpoint of $6.5 billion in the first quarter, which is also above expectations. Better, Oppenheimer analysts raised their price target on NVDA to $275 from $250. Even Piper Sandler just raised their price target to $275 from $225.
Most exciting of all, Chief Executive Jensen Huang told analysts that activity around Nvidia’s AI infrastructure “has gone through the roof” since the public debut of Open AI’s ChatGPT, as noted by MarketWatch.com. That being said, analysts at Rosenblatt say NVDA’s AI play will have “disruptive implications” for the world at large.
Even Goldman Sachs upgraded NVDA to a buy rating on the accelerating AI story. “We believe the acceleration in AI development/adoption across cloud hyper scalers as well as enterprises will, if anything, serve to extend the company’s leadership position as customers with any sense of urgency will lean on solutions that are scalable and available today,” Goldman said.
And, we have to consider that AI will be a big catalyst moving forward.
Growing fast, Grand View Research, the global AI boom could grow from about $137 billion in 2022 to more than $1.81 trillion by 2030. In short, don’t ignore the AI story. It’s only gaining traction, and it could send stocks like Nvidia to higher highs.
In fact, AI could easily be one of the top stories of the year.