As we kick off a new year, investors and analysts alike are keeping a close eye on the Magnificent 7 stocks that dominated headlines in 2024. Among them, NVIDIA (NASDAQ:NVDA) has emerged as one of the most notable beneficiaries of the AI revolution. With heavy capex spending among US megacaps, it’s been an arms race to secure leading positions in this emerging field.
The Rise of AI: A New Year’s Resolution
AI is poised to snatch the spotlight once again this week at CES with Jensen Huang delivering the keynote tonight. NVIDIA then takes the stage a couple more times in Las Vegas before the firm heads west to San Francisco next week at the J.P. Morgan Healthcare conference – an event at which Jensen made headlines in 2024.
NVIDIA’s AI Surge Powers 25% of S&P 500 Gains in 2024
As reported by Yahoo Finance, NVIDIA’s AI surge contributed significantly to the S&P 500’s gains in 2024. With a price-to-earnings growth (PEG) ratio of just 0.6x, compared to other large technology stocks trading at 2-2.5x on a PEG basis, BofA has retained NVIDIA as its Top Pick heading into CES next week.
Earnings Forecast Trends: A Key Focus
Traders should brace for possible volatility and keep their eyes on earnings forecast trends ahead of NVIDIA’s Q4 report in February. With consensus calling for $0.85 in non-GAAP EPS for the quarter ending in January, representing bottom-line growth of 64%, it’s clear that AI will remain a key driver of NVIDIA’s performance.
Key Takeaways: A New Year’s Outlook
- AI is poised to snatch the spotlight once again at CES with Jensen Huang delivering the keynote tonight.
- NVIDIA then takes the stage a couple more times in Las Vegas before heading west to San Francisco next week at the J.P. Morgan Healthcare conference.
- Earnings forecast trends will be key focus ahead of NVIDIA’s Q4 report in February, with consensus calling for $0.85 in non-GAAP EPS for the quarter ending in January.
Additional Resources: A Deeper Dive
For a more in-depth look at NVIDIA’s performance and outlook, investors can consult the following resources:
- NVIDIA CEO Jensen Huang to Deliver CES 2025 Keynote: CES
- J.P. Morgan CES Fireside Chat: NVIDIA Investor Relations
- CES Financial Analyst QA: CES
- More Than 40% of S&P 500 Companies Cited AI on Earnings Calls for Q2: FactSet Insights
By staying informed and up-to-date on NVIDIA’s performance and outlook, investors can make more informed decisions and navigate the ever-changing landscape of the tech industry.
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