If you like 5G stocks as much as I do, then you’re likely a big fan of Nvidia (NASDAQ:NVDA), NVDA stock and the semiconductor company’s commitment to innovation and state-of-the-art technology.
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While the stock market shuddered in February, Nvidia just kept rolling along. Nvidia stock has gained 11% since the beginning of last month thanks to a solid earnings report and excellent commentary from analysts.
That said, let’s take a closer look at NVDA stock — which is one of my top Growth Investor recommendations right now.
NVDA Stock by the Numbers
It’s no question that 2018 wasn’t a great year for Nvidia. The stock fell sharply in the back half of the year, losing nearly a third of its value into 2019.
However, the past is the past. And NVDA stock reached an all-time high of about $315 in mid-February before slipping a bit due to the coronavirus from China amid the broader market selloff.
Furthermore, fourth-quarter earnings had NVDA’s revenue at $3.31 billion — a 41% increase from the previous year — and earnings at $1.89 per share. The company said it had better-than-expected AI revenue growth, as well as solid growth from its gaming business.
Looking ahead, the company is expecting revenue of $3 billion — plus or minus 2% — for the first quarter, which slightly beats analysts’ expectations. However, this is a change from the company’s previous guidance due to possible headwinds from the coronavirus.
That said, it’s no wonder the bulls love NVDA stock.
Current Catalysts for Nvidia
Moreover, one of the biggest reasons to like NVDA right now is its graphic processing unit (GPU). This is the signature technology that sets Nvidia apart in the semiconductor space.
The GPU makes modern video games and computer-generated graphics in movies possible. So with the video game industry likely generating around $152 billion in 2019 and growing about 10% per year, Nvidia is set to cash in for the long haul.
Currently, about half of NVDA’s profits come from gaming, and that’s expected to grow in the years to come.
But, that’s not all.
Nvidia’s GPU chips are also in demand in the fields of cryptocurrency mining and machine learning. Machine learning is the foundation for artificial intelligence (AI), which is an exciting wave of technology — including products such as autonomous vehicles — that will grow in the 21st century.
However, I’m most excited about Nvidia’s involvement in the deployment of 5G technology. 5G technology will make our “smart” devices faster and smarter. It will make wireless internet connections as fast as being connected to a modem. And, it will make virtual reality technology much more accessible. In turn, this development will make watching sports better and everyday chores like seeing your doctor more convenient.
Bottom Line on NVDA Stock
After a rough patch in 2018, NVDA stock is back on track and looking better than ever. The company’s efforts in 5G technology, its state-of-the-art gaming processors and its work in AI put Nvidia at the forefront of some of the most exciting and important technology today.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
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