Before the numbers are released: Nvidia shares are selling like hot cakes

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What’s going on at Nvidia? The chip developer from Silicon Valley, which is at the forefront of generative artificial intelligence, will present its figures for the full year and the fourth quarter of 2023 tomorrow, Wednesday.

A large number of investors have been stockpiling Nvidia shares in advance. According to Reuters, they are now the most traded stocks on the New York Stock Exchange, clearly outperforming Wall Street’s usual favorites, Tesla and Apple. $30 billion worth of Nvidia shares were traded in the last 30 days.

This reflects analysts’ and investors’ high expectations for the company’s share price development. The share value has increased by an incredible 47 percent since the beginning of the year.

Price targets continue to rise

Will it stay this way? At least that’s what institutional investors assume. For example, HSBC bank raised its price target from $800 to $835 on February 18.

In the third quarter of 2023, Nvidia’s profits were $9.2 billion, which is 13 times more than in the same period the previous year. Last year, Nvidia increased its brand value by 163 percent to 44.5 billion dollars.

In terms of market capitalization, the company entered the top 10 worldwide, surpassing only Microsoft and Apple. As Nvidia dominates nearly 80 percent of the AI ​​chip market, its market cap has now surpassed that of Amazon and Alphabet, making Nvidia the third most valuable company on Wall Street by market cap. Its market cap is currently $1.8 trillion.

Analysts expect average sales to rise more than 120 percent to almost $60 billion for the full year 2024, ending Jan. 31. That could boost adjusted earnings per share by more than 407 percent to $12.39. This also explains why investors are so keen on Nvidia shares.

Source :Blick