NVIDIA, a leader in AI chips, is predicted to become extremely wealthy in the future, rewarding its shareholders. CEO Ben Reitzes of Melius Research stated that NVIDIA has a significant advantage in AI due to its “full stack” approach with hardware and software, allowing it to monetize AI effectively. He has a $160 price target on NVIDIA shares, predicting a 30% gain from the current value.
With a massive surge in stock price this year and consistent innovation in new products, NVIDIA is well-positioned for further growth. Reitzes forecasts that NVIDIA will generate $270 billion in cash over the next three years, potentially leading to significant returns for shareholders. Despite the company’s focus on R&D and potential limitations on investment, NVIDIA has been returning capital to shareholders through buyback programs and increased dividends.
NVIDIA’s cash generation has been accelerating, with strong financial results in recent quarters. CEO Jensen Huang reassured investors that NVIDIA will maintain its status as a top player in AI training chips, particularly with the upcoming launch of the Blackwell architecture platform later this year. Huang expressed confidence that this new product will be a game-changer in computing history.
Overall, analysts believe that NVIDIA’s strategic approach to AI and consistent innovation in products will continue to drive its success in the coming years, leading to substantial rewards for its shareholders. Despite potential limitations on investment, NVIDIA’s strong cash generation and commitment to returning capital to shareholders through buybacks and dividends further reinforce the company’s growth potential.
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https://fortune.com/2024/06/29/nvidia-stock-buyback-outlook-cash-pile-dividend-shareholder-returns-ai/
