Is NVDA Stock Screeching Out of the Fast Lane? Not Quite!
InvestorPlaceJan 08
During an address on Monday ahead of this year's Consumer Technology Association show in Las Vegas, Nvidia announced three new graphic chips for personal computers that are intended to augment users' experience with generative artificial intelligence (AI).
Announcing the "new series" of GeForce RTX 40 SUPER graphic processing unit, the company said that the new models — the GeForce RTX 4080 SUPER, RTX 4070 Ti SUPER, and the RTX 4070 SUPER — will be faster, have increased memory, and more processing cores, which will enhance gamers' experiences.
While Nvidia's rapid growth in 2023 has recently been offset by many investors pulling out of their positions due to satisfactory profit margins and murmurs of a bubble burst, the AI boom is set to continue in 2024 — spearheaded by the tech giant. AMD and Intel remain far behind Nvidia to lead the market in AI chip production, and as the sector inevitably continues to grow, Nvidia will reach new heights as its stock price looks set to continue in the fast lane.
The current hype surrounding Nvidia won’t last forever. While riding high on the AI hype and beating market expectations, bullish predictions over the chipmaker's future have boiled over into irrational euphoria. Do not be disappointed if current growth driven by risky and unfounded AI hype does not materialize into an unstoppable upward trend.
There's a 25% chance that the stock price of Nvidia will trade below $250 for at least one full day before 2025, according to the Metaculus prediction community.