We recently published a list of 10 Best Big Data Stocks To Buy Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against the other big data stocks.
The global big data market is on a rapid growth trajectory, projected to reach $103 billion by 2027, more than doubling its size from 2018. This explosive growth is driven by the increasing reliance on data to inform business decisions, optimize operations, and unlock new revenue streams. According to Statista, the software segment, in particular, is poised to dominate, accounting for 45% of the market by 2027. Big data, characterized by its massive volume, high velocity, and wide variety, presents both opportunities and challenges. Traditional data processing tools struggle to handle the scale and complexity of modern data sets, which have been expanding rapidly due to the surge in mobile data traffic, cloud computing, and the integration of technologies like artificial intelligence (AI) and the Internet of Things (IoT). These factors have contributed to the rise of big data as a critical asset for businesses across industries. As the data landscape evolves, advanced analytics tools such as predictive analytics and data mining have become essential for extracting valuable insights from vast datasets.
The rise of the Internet of Things (IoT) has led to a surge in connected devices, generating enormous amounts of data that necessitate advanced big data solutions for effective processing and analysis. Cloud computing enhances the big data market by offering scalable and cost-efficient storage and processing capabilities, enabling businesses to handle large data volumes with ease. Technological advancements in big data are continually enhancing the management and analysis of vast datasets, making these processes more accessible and practical. This progress supports the growing trend of data-driven decision-making, where companies increasingly rely on data insights to make informed choices, optimize operations, and secure a competitive edge. Additionally, big data analytics helps organizations uncover hidden patterns and customer trends, fostering innovation and allowing for the development of products and services that adapt to evolving market demands, underscoring the vital role of big data in today’s competitive landscape.
Investment in big data technologies is also driven by stringent data privacy and security regulations. Compliance with laws like the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S. is becoming mandatory for businesses. These regulations require robust data handling practices, pushing companies to implement advanced big data solutions that ensure data privacy and security. Enhanced measures such as secure storage and data privacy protocols build trust with consumers and stakeholders. Moreover, the need for effective data governance frameworks is accelerating the adoption of sophisticated big data technologies. These solutions facilitate comprehensive data management, including tracking data lineage, maintaining data integrity, and conducting regular audits. Emphasis is placed on integrating encryption, anonymization, and real-time monitoring tools to prevent data breaches and unauthorized access. Continuous investment in big data technologies is crucial for businesses to meet evolving compliance requirements, thereby driving the market’s growth.
According to a report by Verified Market Reserach, North America is projected to remain a leader in the big data market, driven by key industries such as finance, healthcare, and e-commerce. In the financial sector, Big Data analytics plays a crucial role for banks, investment firms, and insurance companies by providing deeper insights into customer behavior, detecting fraudulent activities, and evaluating risk. By analyzing extensive data sets, including transaction histories, market trends, and customer demographics, financial institutions can uncover patterns and anomalies that aid in making informed decisions and managing risks. Predictive analytics models further enhance market trend forecasts, optimize investment strategies, and improve portfolio management, contributing to greater profitability and competitive edge in the financial sector.
In healthcare, Big Data analytics significantly improves patient care, reduces costs, and advances medical research. Healthcare providers use Big Data to analyze electronic health records (EHRs), medical imaging, and genomic data to tailor treatment plans, diagnose diseases with greater precision, and predict patient outcomes. Population health analytics also helps healthcare organizations identify high-risk groups, allocate resources more effectively, and implement preventive measures. Additionally, the integration of big data into healthcare systems supports real-time monitoring of patient health metrics, allowing for timely interventions and better overall outcomes. Pharmaceutical companies benefit from big data by accelerating drug discovery, refining clinical trials, and creating personalized medicines, driving innovation and progress in medical science.
With such a robust outlook for the big data market, investors are keenly eyeing companies that are well-positioned to capitalize on this trend. In this article, we will explore the best big data stocks to buy now, focusing on companies that are well-positioned to capitalize on the immense growth opportunities within this dynamic sector.
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NVIDIA Corporation (NASDAQ:NVDA)
Average Analyst Share Price Target Upside: 5.40%
Average Analyst Share Price Target: $131.31
Number ten on our list of ten best big data stocks to buy now is NVIDIA Corporation (NASDAQ:NVDA). The company makes chips that are used to facilitate big data use cases. The average analyst price target for NVIDIA Corporation (NASDAQ:NVDA) is $131.31, indicating a potential upside of 5.40% as of August 16. Analysts consider NVIDIA Corporation (NASDAQ:NVDA) a strong buy ahead of its August 28 earnings report. Despite a 35% drop, the stock rebounded and may surge again. NVIDIA Corporation (NASDAQ:NVDA), a leader in the AI market, stands to benefit from the sector’s rapid growth, projected to expand from $184 billion in 2024 to $826 billion by 2030. Analysts believe the company’s current 78% gross margin may decline due to competition, but this isn’t an immediate concern. With a forward P/E ratio of around 40 for fiscal 2025, NVIDIA Corporation (NASDAQ:NVDA) continued earnings growth could drive its stock higher, making it a solid long-term buy despite potential risks.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“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).”
Overall NVDA ranks 10th on our list of the best big data stock to buy. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
