Nvidia's AI-Fueled Stock Surge Pushes Earnings Multiple Beyond Tesla's — Analyst Hails 'Best GPUs'
Portfolio Pulse from Benzinga Neuro
Nvidia Corp. (NASDAQ:NVDA) shares have surged 180% this year, pushing its market value beyond $1 trillion and its price-to-earnings ratio to 220. The surge is attributed to Nvidia's leading role in the development of AI chips and software, with its H100 chips being bought in large quantities by major players like Microsoft and OpenAI. Despite high growth assumptions, analysts expect Nvidia to report a quarterly revenue of $11.08 billion, a 65% increase from the previous year.
August 12, 2023 | 2:32 am
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Nvidia's stock has surged due to its leading role in AI chips and software development. However, high growth assumptions and investor expectations could pose challenges.
Nvidia's leading role in AI chips and software development has driven its stock price up. However, the high price-to-earnings ratio and investor expectations indicate that the stock's performance may already reflect the company's potential, which could limit further growth.
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