I was not wrong. The article, which was also posted on Reuters, said that Nvidia Corp has announced that it will be incorporating more artificial intelligence (AI) features into one of its mid-range chips for gamers to enhance graphics. The new RTX 4070 chip, which is priced at 599 USD, will be available from Thursday and is expected to significantly improve gaming experiences. Very positive and much needed news for the company amid the chip crisis we are facing around the world. And also despite a decline in gaming revenue of 27% due to a slowing overall PC market, Nvidia is still getting about one-third of its 26.9 billion USD in fiscal 2023 revenue from gaming chips. AI in this chip will be used to predict about seven out of every eight pixels instead of calculating the value of each pixel, which makes rendering images on high-resolution screens faster and more efficient. Luckily, I am a gamer and I know what they are talking about, so I can judge this as a very good news, as well as something innovative from them. Innovations are always good to stay one step ahead from the competition.
From the fundamental point of view this looks like a no-brainer. Just to make it sure, I decided to perform also the quick technical analysis. Stock had volatile 6 months, as it fell from around 330 USD to almost 100 USD.* Since then, however, it has been on the rise and is currently sitting at 264 USD per stock.*
Despite not so positive technical outlook, fundamental part has a bigger role, in my opinion. Especially, when I am looking at the company with proven history, great plans, and desire to constantly achieve new and bigger things. I have decided to buy stocks in Nvidia as soon as the US market will open. One reason for this decision is also, that on Tipranks, the highest target price is set to 350 USD, which gives this stock nice potential movement. [1]
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* Past performance is no guarantee of future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
Link to a 5-year chart: https://www.investing.com/equities/nvidia-corp