Top Artificial Intelligence Stock to Buy Now, Up 1,080% in 4 Year

Published Date: 27/05/2024      

Nvidia's phenomenal run continues, with shares advancing 1,080% in four years. Despite this, 90% of Wall Street analysts still rate the stock a buy. Here's what investors need to know about this artificial intelligence leader.

Artificial intelligence (AI) has been transforming various industries, and Nvidia has been at the forefront of this revolution. The company's graphics processing units (GPUs) have become the gold standard for AI applications, and its dominance in the data center market has driven its phenomenal growth.

Nvidia's stock has been on a tear, advancing 1,080% in just four years. Despite this incredible run, 90% of Wall Street analysts still rate the stock a buy, and the other 10% rate it a hold. Not a single analyst recommends selling. Nvidia's median price target is $1,200 per share, implying about 13% upside from its current price.

So, what makes Nvidia such a compelling investment opportunity? The company's leadership in accelerated data center computing is a key factor. Nvidia's GPUs are the gold standard for AI applications, and its full-stack strategy has enabled it to dominate the data center market. The company's latest earnings report was a blockbuster, with revenue rising 262% to $26 billion and non-GAAP net income soaring 461% to $6.12 per diluted share.

Nvidia's valuation may seem steep at 62.3 times earnings, but it's relatively reasonable compared to other AI stocks. The company's projected earnings growth rate of 38% annually over the next three to five years makes its valuation seem more reasonable.

Nvidia is a leader in the field of artificial intelligence, and its dominance in the data center market has driven its phenomenal growth. With a strong track record of innovation and a solid financial position, Nvidia is well-positioned to continue its upward trajectory.