Since the launch of ChatGPT in late 2022, semiconductor stocks have been thriving. The emergence of new generative artificial intelligence (AI) applications has created a high demand for cutting-edge graphics processing units capable of handling accelerated applications. Nvidia (NASDAQ: NVDA) has emerged as the leader in this segment of the chip market, driving its sales and stock price to new heights.
With Nvidia’s share price soaring by 222% in the 12-month period ending Wednesday, some investors are understandably concerned about the stock’s rapid ascent.
Nvidia is set to announce its fiscal fourth-quarter results on Feb 21. In the fiscal third quarter, which ended Oct. 29, total revenue saw a remarkable 206% year-over-year surge.
At a valuation of about 97 times trailing earnings, the stock’s current growth trajectory justifies this figure. However, the semiconductor industry is known for its cyclical nature. The demand for chips that power generative AI applications will…
2024-02-17 06:27:00
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