NVDA's Ratings Journey: How AI Triggered Its 6X Run

What to expect after its 10-for-1 stock split… Published By Money & Markets, LLC. May 28, 2024 Published By Money & Markets, LLC. May 28, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( NVDA's Ratings Journey: How AI Triggered Its 6X Run Money & Markets Daily, On March 13, 1986, a little-known tech company based in Washington launched its initial public offering on the Nasdaq exchange. By December 30, 1999, Microsoft Corp. (Nasdaq: MSFT) had jumped 60,393% — from a split-adjusted IPO price of $0.10 to nearly $59 per share. [Turn Your Images On] Its rise started in 1990 when the company's total annual sales eclipsed $1 billion for the first time. That followed the release of Windows 3.0, a long-term partnership with computer giant IBM and the first Office for Windows software bundle. As a stock, Microsoft was the talk of Wall Street. It had cornered the market on computer software. And outside of a few bumps in the road — like its $8 billion deal to buy Finnish smartphone maker Nokia — Microsoft remains a stalwart stock that has now jumped an incredible 442,721% since its IPO! It beat out competition like Intel Corp., Qualcomm and Cisco because it didn’t rest on its laurels … it disrupted its own software business. Another tech company is doing the same thing in 2024, and it’s become the new talk of Wall Street. --------------------------------------------------------------- [Turn Your Images On]( [“Titan of Tech” Bets Big on Tiny AI Company]( He’s made as much as 3,250,000% in just three years on companies like Facebook, Airbnb and PayPal… But our research shows his latest investment could be his most successful venture yet. [See how you can invest alongside him]( (with a starting stake of just $25). But you’ll want to do it between now and August 5. --------------------------------------------------------------- The Rise of 3D Graphics … and AI Noting a rise in the computer gaming industry, Jensen Huang, Chris Malachowsky and Curtis Priem had a vision. They wanted to introduce 3D graphics to video games — games were built in 2D prior to that. In 1993, they formed Nvidia to accomplish that vision. By 1999, they had created the first graphics processing unit (GPU). These GPUs render smooth graphics at a faster rate, giving a more realistic and immersive visual experience. Business chugged along, and, like Microsoft, Nvidia Corp. (Nasdaq: NVDA) became a leader in its industry… NVDA stock grew 73,336% from its IPO in 1999 to 2022! During that time, developers were working on a new technology that would propel NVDA to its elite status on Wall Street today… We're talking about artificial intelligence (AI), of course! Because Nvidia's innovative GPUs can perform thousands of operations simultaneously, they are critical to neural networks, aka deep learning … a type of AI. So, NVDA started cranking out GPUs for companies like Google and Microsoft In the race for AI disruption. But that work was behind the scenes. Unless you had a computer engineering background, you knew little, if anything, about it. It wasn’t until November 2022 that the hype of AI took off with the release of ChatGPT, an AI-based chatbot and virtual assistant. That’s when Nvidia became a household name … and a stock market darling. [Turn Your Images On] Since ChatGPT hit the open market, NVDA’s stock has jumped 461%! The company’s market cap has grown from $4.1 billion in 2009 to $2.3 trillion in 2024. Now, the demand for NVDA’s chips is becoming greater than the company can handle. During last week’s earnings call, Huang told analysts that as many as 20,000 generative AI startup companies are standing in line and waiting for NVDA’s AI chips. At the same time, the company recorded a 262% jump in revenue year-over-year and, due to its expanding stock price, a 10-for-1 stock split. Pro tip: A stock split occurs when the number of outstanding shares for a company is increased by dividing existing shares. Shareholders will receive 10 shares for every one they currently own. The overall value stays the same, but each share will be worth a tenth of what it is now. For example, if you own one share of NVDA on June 7 (when the split occurs), you will own 10 shares. The overall value of the shares is the same, but each share is worth 1/10 of what it was the day before. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [Congress Fast-Tracks Bill to Unleash AI Energy]( In an unprecedented bipartisan move, Congress recently passed the ADVANCE Act to pave the way for a breakthrough called AI energy. A new form of energy that could finally make America energy independent. [The full story is here]( --------------------------------------------------------------- NVDA’s Green Zone Power Ratings Journey You can track NVDA's path to becoming a Wall Street darling using Adam O’Dell’s powerful Green Zone Power Ratings system. The chart below shows its "ratings journey." NVDA Now In “Bullish” Territory [Turn Your Images On] [(Click here to view larger image.)]( When ChatGPT was released in November 2022, NVDA stock was in “Bearish” territory. But once news started to spread about how its GPUs powered the AI revolution, that quickly changed. After seven months of its share price creeping higher, NVDA turned “Bullish.” The Green Zone Power Ratings system told us the stock would beat the broader market by 2X over the next 12 months. It’s done much, much better than that: NVDA Did Way Better Than 2X [Turn Your Images On] [(Click here to view larger image.)]( Since turning “Bullish,” NVDA (the blue line in the chart above) has advanced 139%, while the broader S&P 500 (the green line) is only up 26% — NVDA is beating the market by nearly 6X! Bottom line: NVDA’s ability to disrupt its own business is similar to what we’ve seen with Microsoft … and we all know how that story is playing out. NVDA still rates “Bullish” on our Green Zone Power Ratings system. We continue to expect the stock to outperform the broader market over the next year. With the stock split dropping the price of NVDA’s shares, investing in this tech powerhouse will become even more attractive to investors who want in but don’t want to spend $1,000 per share. I expect the combination of the AI revolution, increasing demand for its products and the upcoming stock split will keep pushing NVDA higher. Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- [Turn Your Images On] The Job Market Is Changing Rapidly Computer science majors have long enjoyed strong job markets. However, demand for software developers and other IT jobs has fallen 70% in the past two years. The chart below shows that Indeed.com job postings for software developers (the red line) have been down sharply since 2022, when the profession had the highest number of listings on the job board. Postings for jobs related to math (blue) and information systems support (orange) are down more than 60%. These positions, associated with the tech sector, are down much more than total listings, which dropped just 33% since the 2022 peak. The good news is that job listings are still 15% above their pre-pandemic level. The bad news is that high-paying jobs are getting harder to find. — Mike Carr, Chief Market Technician, Money & Markets Indeed.com Job Postings [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [SUMMER TRAVEL STOCK UPDATE: HOW 4 STOCKS RATE]( - [THIS STRONG BULLISH GAS STOCK IS KEY TO ARGENTINA'S FUTURE]( - [A TREASURE TROVE OF UNTAPPED INVESTMENT IDEAS]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. 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