Nvidia Stock Remains A Bargain Despite More Than Tripling In 2023, Says Bernstein Analyst: 'Cheapest AI Play'
Portfolio Pulse from Rounak Jain
Nvidia Corp. (NVDA) stock has surged over 241% in 2023, driven by the AI revolution, yet Bernstein analyst Stacy Rasgon considers it the 'cheapest AI play' and maintains a target price of $700. Despite Nvidia's earnings beat and commanding an 85% market share in generative AI, the stock has seen a 1.2% decline over the last month. Concerns about an 'air pocket' in the AI space and competition from Advanced Micro Devices (AMD), which has projected significant AI revenue growth, may be affecting investor sentiment. Nvidia's data center revenue has significantly outperformed Intel's, with a nearly fourfold increase to $14.5 billion in Q3 2023.
December 16, 2023 | 5:02 am
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POSITIVE IMPACT
Nvidia's stock has significantly appreciated due to its AI-driven growth, yet Bernstein maintains a high target price of $700, indicating potential for further gains despite recent underperformance.
Nvidia's strong performance in AI and data center revenue growth supports a positive outlook, but recent stock decline and competition from AMD may cause short-term volatility. Bernstein's high target price suggests confidence in long-term value.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
AMD is seen as a growing competitor in the AI space, with projections of significant AI revenue growth, potentially impacting Nvidia's investor sentiment.
AMD's positive guidance on AI revenue growth presents it as a viable alternative to Nvidia, which may influence investor decisions and create competition in the AI market.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70