Name of opportunity: 👀
Nvidia Corporation
Trouble for Nvidia and the Magnificent 7: 😱
Today news emerged that Nvidia’s new parallel processing chip Blackwell will be delayed approximately 3 months, apparently due to a flaw that was only discovered quite late in the design process. This will affect Nvidia’s ability to produce chips at the volume they had expected to for the rest of 2024, affecting the results we can expect to see in Q3 and Q4 - it may also affect the tech giant at the start of 2025 too. The Blackwell chip is highly anticipated by companies that hope to use it for AI, as it will cost 25x less to run than Nvidia’s current chip and be more energy efficient. As a result, Nvidia stock is down 6.15% today.
Other Magnificent 7 companies are also struggling, as today the group’s market cap as a whole fell by $762 billion according to Dow Jones Market Data. For example, Apple has fallen 4.07% in the last day, and Tesla has fallen by 3.54%. This has been linked by analysts to fears about the recession - while previously the Magnificent 7’s performance has been strong while other companies’ suffered, recent earnings across all the companies in the group have disappointed investors and analysts.
How hot is this investment opportunity? 🔥🔥🔥
Nvidia Corporation is still rated as a ‘Buy’ overall. Some think that the delay to the Blackwell chip is only a temporary setback. While it will no doubt affect Nvidia’s income and production and delivery metrics for now, when it is out it could increase many organisations’ access to AI technology. It’s highly likely to be a very in-demand item.
As displayed in the image above, analysts still think Nvidia will grow in the next 12 months, predicting that the stock could increase in value by 24.09%. Analysts predict the price of NVIDIA Corporation will increase from $101.78 to $125.16 in the next 12 months. If you invested $1000, you might profit $240.88.
Another reason why this could be the case is the fact that Meta Platforms has announced that it will continue to invest in AI infrastructure, meaning that this massive company, a fellow member of Magnificent 7 group, will likely be in need of Nvidia’s chips. Nvidia is the biggest semiconductor company based on market cap, and like Meta, is US-based.
Big Tech: 💻
We have covered Nvidia before on Hot Stocks, most recently in May when we discussed what the results of its earnings might be. At that time, the stock was valued at $937.40, a valuation from which it has risen to its current price of $101.78. It’s a very valuable company, despite this recent news about the Blackwell chip which has got investors feeling less confident in the stock.
Which neme?: 🔍
‘Largest US Stocks, ‘Microchips’, ‘Top Stocks on X/Twitter’, ‘Gaming’, ‘Big Tech’, ‘Top Stocks in AI’, ‘High Growth Stocks’, ‘Invest Like The Wealthiest’, ‘Copy a $10Trn Asset Manager’
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