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Nvidia Sees Substantial Growth

Posted on October 25th, 2021

Nvidia, Corp. (NVDA) saw significant growth over the past 2-years, outperforming the S&P 500 and rising by approximately 364.7% compared to the S&P’s gain of about 51.7%. Hedge funds were selling, though the stock achieved a ranking of eighteen on the WhaleWisdom Heatmap.

Nvidia is a global technology company that manufactures graphics processors, chipsets for computers, and other multimedia software. The company operates through a Graphics Processing Unit and Tegra Processors segment. Its product line generates graphics on everything from personal computers and workstations to mobile devices. Nvidia is well known for its graphics processing unit (GPU) technology that serves as an essential element of personal computer design and is a significant source of revenue for the company. As Nvidia furthers its expansion into artificial intelligence technologies, there are further opportunities for financial growth.

Hedge Funds Trim Portfolios

Hedge funds were selling in the second quarter of 2021, and the aggregate 13F shares held decreased approximately 4.0% to about 279.5 million from 291.0 million. Of the hedge funds, 54 created new positions, 154 added to existing holdings, 33 exited, and 170 reduced their stakes. In contrast, institutions were buying and increased their aggregate holdings by about 4.3% to approximately 1.7 billion from 1.6 billion. The long-term 13F metrics between 2001 and 2021 show that Nvidia continues upward, with the investor base continually growing in size.


Positive Multi-year Estimates

Analysts anticipate that earnings will rise from 2022 through 2024, ranging between 11.5% to 62.3% in year-over-year growth. This growth could bring earnings to $4.06 by January of 2022, $4.54 by 2023, and $5.06 by 2024. Revenue estimates also include healthy year-over-year growth across the next three years that could bring revenue to approximately $33.3 billion by January 2024


Analysts Overall Are Optimistic

Analyst John Vinh of KeyBanc raised the firm’s price target on Nvidia to $260 from $245 and kept an Overweight rating on shares. Summit Insights Group raised Nvidia to a Buy rating after a solid finish to the second quarter and encouraging demand in cryptocurrency mining and the gaming markets.

Positive Outlook

Nvidia’s stock trends have caught the attention of analysts and investors, who recognize that business opportunities also lie ahead for continued growth. While Nvidia has its fair share of competition from tech companies and faces some challenges from supply disruption, future estimates for revenue and earnings should be encouraging for investors.

This entry was posted on Monday, October 25th, 2021 at 7:40 am and is filed under Stock. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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