NVIDIA | The AI Trend Locomotive Shows No Signs of Slowing Down

Ticker (Exchange) – NVDA (NASDAQ)

ISIN - US67066G1040

Current price – $113.4

Target price – $149.5

Growth potential – 31.8%🔥

Investment horizon – 1 year

NVIDIA is an American technology company, a manufacturer of graphics processors and system-on-a-chip products. NVIDIA is one of the main beneficiaries of the AI development trend, as its microchips form the foundation of the hardware used for this technology. Over the past 12 months, the company's stock has risen by almost 160% (considering a 1-to-10 stock split), allowing it to join the ranks of the world's top three largest companies, following Apple and Microsoft. Despite this, there is still growth potential, and the recent stock correction presents an attractive entry point. The fair value of NVIDIA shares is estimated at $149.5, with an upside of 31.8%.

Investment thesis

🔼 Outstanding financial performance. NVIDIA delivered strong results for the Q2 2025 fiscal year (ending July 28, 2024). The company’s revenue surged 122% y/y, reaching $30.0 billion, with $26.3 billion coming from the Data Center product segment. Adjusted earnings per share (EPS) soared by 152%, reaching $0.68. The figures exceeded even the market's already optimistic expectations. Additionally, NVIDIA's management approved a $50 billion share buyback program.

🔼 Optimistic outlook. The continued rise of AI technology forecasts promising prospects for NVIDIA. At a recent investment conference, the company highlighted sustained high demand for microchips. In its outlook for the current quarter, it expects revenue to reach $32.5 billion, 8.3% higher than the current figure.

🔽 Risks. NVIDIA has reached impressive heights, which inevitably leads to "growing pains." It will become increasingly difficult for the company to maintain triple-digit growth rates and meet the market's high expectations.

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Disclaimer

The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.

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