Based on recent developments in the AI chip market, Nvidia remains the clear leader with its H100 processor enjoying full production since September 2022. Rivals AMD and Intel are struggling to catch up, with AMD projecting AI GPU sales of at least $4 billion in 2024 and Intel expecting $500 million in AI chip sales in the second half of 2024 through the launch of the Gaudi 3. Nvidia’s dominant position is further strengthened by its exclusive access to half of TSMC’s advanced chip packaging capacity devoted to AI chips. As a result, investment bank UBS has raised its price target for Nvidia to $1,150, predicting $175 billion in revenue and earnings of $41 per share in 2025. While Nvidia’s stock is already trading at a steep premium, its AI chip dominance suggests significant potential for strong gains beyond what analysts are forecasting. The Motley Fool Stock Advisor has previously recommended Nvidia, and its analysts continue to identify ten stocks with high growth potential. The service offers guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Since 2002*, the service has outperformed the S&P 500 by quadrupling returns.
[*As of May 6, 2024]
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