Nvidia Stock Is Down 17% From Its High. Is the Artificial Intelligence (AI) Leader Finally Cheap?
Yahoo Finance ·
The largest company in the world, Nvidia ( NVDA +0.62% ) , has had a bit of a rough stretch in recent months. Its stock peaked in May, but declined around 17% since then. That's not an insignificant decline, and leaves investors wondering when the next rally could be coming. I think there are some catalysts later on in July that could cause Nvidia's stock to rocket back to all-time highs, and investors would be smart to load up on shares before the rally occurs. Nvidia makes graphics processing units (GPUs) along with various products to support its accelerated computing ecosystem. GPUs are still the top choice for running AI workloads, and Nvidia dominates the market share of GPUs sold for data center computing. There's a very strong correlation between increasing data center spending and Nvidia's sales, and that trend will likely accelerate as data centers shift from construction costs to computing costs. This year, the big four AI hyperscalers plan to spend around $650 billion on data center capital expenditures . Next year, Nvidia claims this group will spend more than $1 trillion.
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