Nvidia Stock (NVDA) is making a recovery after three consecutive sessions of losses. Some on Wall Street believe that the recent decline may have been exaggerated, prompting questions about the future of chip stocks. Daniel Flax, a Senior Research Analyst at Neuberger Berman, recently appeared on Catalysts to provide insights into Nvidia’s recent performance and offer guidance for investors considering keeping Nvidia in their portfolios.
Flax highlighted key factors that investors should take into account when evaluating technology companies, such as analyzing each of their businesses. The data center business is particularly important, as there is strong demand for Nvidia’s systems in this sector. Additionally, growth in the networking side is also healthy. Flax emphasized the importance of balancing demand with supply chain constraints, which Nvidia and its partners are working to improve in the coming quarters.
Despite recent volatility in the market, Flax remains optimistic about Nvidia in the long term, citing the company’s product execution and vibrant ecosystem as key drivers of growth. He noted that Nvidia’s continuous execution of product cycles, such as the upcoming Hopper and Blackwell releases, will be critical for driving growth in the years ahead. Flax highlighted the importance of a vibrant ecosystem that attracts developers to the Nvidia platform, adding that the company continues to be well-positioned for future success.
Flax also discussed the factors that analysts and investors should consider when evaluating Nvidia’s potential heading into the upcoming quarterly earnings release. He stressed the importance of analyzing the company’s different business segments, particularly the data center and networking businesses. Flax acknowledged the current supply chain constraints but expressed confidence that Nvidia and its partners will continue to make progress in improving supply in the coming quarters. He emphasized that execution on the product roadmap will be crucial for driving growth and supporting the stock performance over the next 12 to 18 months.
Furthermore, Flax highlighted the broader AI landscape and the changing narrative surrounding AI operations. While the environment remains fluid, Flax emphasized the importance of companies with distinctive intellectual property, strong execution capabilities, and the ability to invest during challenging times. He mentioned companies like Qualcomm, Apple, Microsoft, Amazon Web Services, and Google Cloud as examples of companies well-positioned for growth in the AI space.
In conclusion, Flax remains positive about Nvidia’s long-term prospects despite short-term volatility in the market. He emphasized the company’s strong performance in key business segments and the importance of executing on the product roadmap to support future growth. Investors should consider these factors when evaluating Nvidia’s potential and position in the AI landscape.
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https://finance.yahoo.com/video/nvidia-worth-buying-back-time-150220498.html
