Why Nvidia Stock Keeps Going Up
According to Abhishek Jain, Head of Research at Arihant Capital Markets, “NVIDIA has experienced remarkable growth and the impressive performance has outpaced other members of the broad-market S&P 500 index, leading to Nvidia’s valuation surpassing its peers.”
“The rise in interest in artificial intelligence is to blame for the increase in Nvidia’s stock value. This curiosity has been stoked by recent developments in generative AI, which allows for human-like discussions. Nvidia’s stock value has therefore increased thrice in less than eight months,” he remarked.
Nvidia, which forecasted significant revenue growth and stated it was increasing manufacturing of its AI chips to meet soaring demand, saw an increase in its stock price as a result of the growing excitement surrounding AI and ChatGPT. Because the GPU is a complex and hard to understand technology, Nvidia effectively enjoys a monopoly.
It is definitely full of potential given the way AI has taken over the globe and the significant roles that big data, analytics, and machine learning will play across all industries, according to Aamar Deo Singh, Head Advisory, Angel One. “The introduction of ChatGPT was a game-changer for Nvidia because it sparked fierce competition among the top tech firms and start-ups in the world to acquire the H100,” he claimed.
On the other hand, domestic investors are searching for Indian AI proxy plays. However, there isn’t a pure-play AI business in India to profit on the topic; instead, analysts advise taking a closer look at a few stocks in the IT sector.
According to Singh from Angel One, the Indian semiconductor industry is anticipated to expand at a CAGR of 19.7% over the following few years due to the expectation that both domestic and international demand will stay strong.