Nvidia (NASDAQ:NVDA) continues to be a strong investment option, according to our bullish stock outlook. Despite the impressive rally in the past year, we believe that Nvidia’s stock still has room for growth in 2024. This is primarily due to the high demand for the company’s artificial intelligence (AI) compatible chips, which has caused short sellers to consistently lose money.
Although there are doubters and skeptics, we remain confident in Nvidia’s growth potential. Recently, Reuters reported that Nvidia is establishing a new business unit dedicated to designing customized chips. This move is aimed at selling these specialized chips to cloud computing firms and other companies that require advanced AI processors. With Nvidia already holding a significant market share in the high-end AI-chip sector, this expansion into customized chip production demonstrates the company’s forward-thinking approach and its desire to meet potential market demands.
Additionally, there is a supply crisis for Nvidia’s RTX 4090 graphics cards in certain regions of Asia, including Southeast Asia and Taiwan. The imbalance between supply and demand has led to price hikes of up to 60% for these cards. This shortage is partly caused by the US government’s restrictions on exporting advanced AI-capable chips to China. Despite the unintended consequences of these export limitations, it highlights the popularity and global demand for Nvidia’s top-of-the-line, AI-enabled products.
Looking ahead to 2024, Nvidia continues to be an industry innovator and a company that pushes boundaries. The sustained demand for its chips, which sometimes causes supply issues, further supports our positive outlook on NVDA stock. While bears, doubters, and short sellers may continue to overlook the value Nvidia brings to its shareholders, the company remains dedicated to providing ongoing value and opportunities for growth.
It should be noted that on the date of publication, Louis Navellier, a prominent investor, held a long position in NVDA.
In conclusion, our NVDA stock outlook is optimistic, warranting an A grade rating. Despite some skeptics, Nvidia’s growth trajectory remains strong due to its AI-compatible chips and the continuous value it provides to shareholders. As the company expands into customized chip production and addresses supply challenges, it is poised for continued success in 2024 and beyond.
