NVIDIA Stocks Soar to Record Highs Amidst AI Developments
NVIDIA’s stock price trajectory seems to continue into the new year, as investors look forward to the AI accelerator developer’s future prospects with much anticipation. At the CES 2024, the company focused on unveiling gaming graphics solutions. However, a mere mention of AI capabilities breathed new life into the stock market, pushing the company’s shares to an all-time high.
In concrete terms, NVIDIA’s shares appreciated by 6.43% yesterday, hitting a peak at $522.53 per share. This is a historic high for the company’s securities. The stocks further solidified their position to $524.71 following the end of the primary trading session. Their trajectory post-Tuesday’s market opening, which takes place this evening in the U.S, is considered intriguing. Considerably, NVIDIA’s securities worth $32 billion were traded in the previous session, making them the most bought and sold papers in the American stock market.
In the past year, NVIDIA’s market capitalization hit a $1 trillion mark for the first time and is now not too far from $1.3 trillion. The company’s stocks underwent more than a three-fold increase in pricing over the past year. According to Bank of America analysts, these securities are heading towards a $700 price point in the foreseeable future. They believe that the company will generate free cash flow of $100 billion over the current and next calendar year. Out of this total, up to $35 billion could be used for stock buybacks and dividend payouts, making NVIDIA’s shares a lucrative investment object.
As per Bank of America analysts, NVIDIA’s revenue share from the software segment is set to increase from its current $1 billion, which constitutes only 2% of the total revenue. The experts estimate that revenues from software sales and subscriptions could see a five-fold increase to $5 billion. This target may be achieved by acquiring relevant service providers, for which the company has more than sufficient funds. Acquisitions in the hardware segment are also a possibility with data storage system market players being potential targets for NVIDIA.