5) NVIDIA Corporation (NASDAQ:NVDA)
Average Upside Potential: 33.65%
NVIDIA Corporation (NASDAQ:NVDA) is the top designer of discrete graphics processing units that enhance the experience on computing platforms.
Recently, NVIDIA Corporation (NASDAQ:NVDA) stated that leaders in robot development continue to adopt the NVIDIA Isaac™ robotics platform. This platform finds its application in research, development, and production of the next generation of Al-enabled autonomous machines and robots. BYD Electronics, Siemens, Teradyne Robotics, and Intrinsic, which is an Alphabet Company, are using the NVIDIA Isaac Robotics Platform for autonomous robot arms, humanoids, and mobile robots.
In another development, Rockwell Automation, Inc. (NYSE:ROK) plans to use NVIDIA Corporation (NASDAQ:NVDA)’s artificial intelligence software in autonomous mobile robots. Rockwell Automation, Inc. (NYSE:ROK) will integrate NVIDIA Corporation (NASDAQ:NVDA)’s Al robot development platform, dubbed Isaac, in its Otto autonomous mobile robots. This is meant for manufacturing facilities.
Shares of NVIDIA Corporation (NASDAQ:NVDA) saw a decline of over ~18% over the past 1 month. Much of this decline came after reports emerged claiming that the Biden administration might put further restrictions on the exports of semiconductor equipment to Chinese markets. Apart from this, uncertain macroeconomic news (Bank of Japan increasing interest rates, disappointing employment numbers for July, etc.) weighed over broader market sentiments, pressuring NVIDIA Corporation (NASDAQ:NVDA)’s stock. There was also news that the company’s launch of chips, which are based on new Blackwell architecture, might get delayed by ~3 months due to design flaws.
Wall Street analysts believe that this short-term news should not shake the long-term view of the company’s performance. The Biden administration has not put any sort of restrictions up until now.
NVIDIA Corporation (NASDAQ: NVDA) recently announced that it plans to ramp up the production of Blackwell chips in 2H 2024. Experts believe that the company’s current-generation Hopper chips should still sell strongly by 2024 end. By that time, Blackwell chips can become a strong contributor to its sales.
Analysts at Argus upped their target price on the company’s shares from $110.00 to $150.00. They gave a “Buy” rating on 11th June. As per Insider Monkey’s 1Q 2024 data, 186 hedge funds had stakes in NVIDIA Corporation (NASDAQ: NVDA).
Patient Capital Management released its second quarter 2024 investor letter and mentioned NVIDIA Corporation (NASDAQ: NVDA). Here is what the firm said:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead both the market and the portfolio, remaining a top performer in the period gaining 36.7%. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and free cash flow (“FCF”) an astounding 126%, 392%, and 610%, respectively, over the last year. While we expect competition to increase, we think NVDA can continue to maintain top market share. While many are concerned with backlog times shortening, we think the rollout of the B100, which promises 2.5x better performance for only 25% more cost, later this year will create more shortages. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
