Can Nvidia Stock Hit $200 in 2024?
Over the last two years, the hype around the artificial intelligence (AI) boom has led to incredible operating momentum for Nvidia (NASDAQ: NVDA), the company that designs and manufactures most of the industry's chips. But while business is roaring, the company's stock price seems to have hit a roadblock. Let's discuss why this might be happening and determine whether Nvidia's shares can hit $200 before the end of the year.
With shares up by around 2,450% over the last five years, Nvidia has been a rewarding investment for its long-to-medium-term shareholders. However, the thesis is beginning to unravel, as strong operational results are no longer impressing the market as much as before.
Second-quarter revenue soared 122% year over year to $30 billion, driven by massive demand for Nvidia's data center graphics processing units (GPUs), which help run and train AI algorithms. The company's bottom line also remains buoyant, with operating income jumping 174% year over year to $18.6 million. Management expects the release of new AI hardware products based on the faster and more efficient Blackwell architecture to stimulate client demand in 2025 and beyond.
Source Fool.com
