Tigress Financial Partners analyst Ivan Feinseth reiterated a Buy rating on Nvidia Corp
NVDA is emerging as a core holding in the generative AI investment theme and remains at the forefront of generative AI technology development.
Feinseth sees NVDA driving a new AI-driven business to upcycle revenue and cash flow growth and create more excellent shareholder value.
He expects the chipmaker to benefit from the projected $1 trillion worth of global data infrastructure spending transitioning to accelerated computing.
Nvidia's Q1 results showed strong revenue growth, with the Data Center segment achieving record revenue of $4.28 billion, up 14% YoY.
The chipmaker's partnerships with significant hyper scalers and cloud service providers position it as a critical supplier in the AI space.
Nvidia's forecasted growth includes a 107.43% increase in net sales revenue to $53.68 billion and a 131.19% increase in economic operating cash flow to $33.15 billion over the next twelve months.
NVDA's return on capital will likely increase to 45.24%, driving gains in shareholder value.
The chipmaker continues to advance its leadership in autonomous vehicle technology, with Q1 2024 Automotive revenue rising by 114% YoY to a record $296 million.
In the gaming sector, NVDA announced the GeForce RTX 40 series of GPUs featuring Ada Lovelace architecture and expanded its gaming titles and cloud gaming services.
NVDA has a strong balance sheet and cash flow to support ongoing investment in R&D, strategic acquisitions, and shareholder returns.
The company has made several acquisitions and minority investments to enhance its capabilities and expand its product offerings.
NVDA returned over $10.4 billion to shareholders in FY 2023 through dividend payments and share repurchases.
The stock is well-positioned to capitalize on emerging opportunities in various technology trends and drive shareholder value.
Price Action: NVDA shares traded higher by 2.08% at $429.77 on the last check Friday.
