![]() That process enables lenders to reach a broader range of customers, especially those with lower incomes and limited credit histories who might otherwise be excluded by traditional credit scoring methods. Upstart is an online lending platform that approves loans for its lending partners by processing nontraditional data points - including a customer's standardized test scores, GPA, area of study, and work history - through its AI algorithms. That's why I believe a fresh bull market could easily propel Nvidia's stock to new highs. Nvidia's stock might seem pricey at 57 times forward earnings, but it could maintain that premium valuation as the AI market grows. As is common with most merger situations, LinkedIn's. The intensifying land grab across the generative AI market could also significantly boost data center GPU sales. As you probably know, Microsoft ( MSFT 3.57) announced its deal to acquire LinkedIn for 26.2 billion, or 196 per share, this June. That recovery should be driven by the stabilizing PC market, China's post-COVID recovery, and less intense macro headwinds. Yet analysts still expect Nvidia's revenue and adjusted EPS to rise 10% and 34%, respectively, in fiscal 2024 (ending January 2025), which would represent an acceleration from its flat revenue growth and 25% earnings decline in fiscal 2023. That makes it one of the best pick-and-shovel plays on the AI market. All the most powerful generative AI algorithms - including ChatGPT and Alphabet's Google Bard - currently use Nvidia's GPUs. Nvidia is the market leader in gaming GPUs, but its top-tier GPUs are also used by data centers to process complex AI tasks. ![]() Its stock isn't cheap at 26 times forward earnings today, but investors could pay a much higher premium for Microsoft once it demonstrates how its AI-driven features can widen its competitive moat, accelerate long-term growth, and reduce operating expenses. Those integrations, along with waning macro headwinds for its core businesses, could easily drive the technology stock to fresh highs once a new bull market starts. Microsoft has already integrated ChatGPT into its search engine Bing and its Azure cloud infrastructure services, and will likely plug those tools into its Windows, Office, and Dynamics customer relationship management (CRM) services in the near future. ![]()
0 Comments
Leave a Reply. |