NVIDIA (NASDAQ: NVDA) saw a significant increase in its stock price on Tuesday, rising by as much as 6.3% and settling at a 5.8% increase by early afternoon. This surge was sparked by news that the company is entering a major new market, potentially boosting future sales.
NVIDIA’s GPUs are widely regarded as the standard in the field of generative AI, providing the necessary computing power for AI training and inference processes. The company recently signed an agreement with telecommunications company Ooredoo in the Middle East, allowing customers in several countries access to NVIDIA’s AI technology.
Despite concerns from some investors about the company’s future growth in AI, experts believe that the adoption of AI is still in its early stages. Estimates suggest that the generative AI market could reach $1.3 trillion by 2032. With NVIDIA stock trading at around 35 times forward earnings, many see it as reasonably priced given the opportunities presented by AI technology.
Investors considering NVIDIA stock should take into account the recommendations of the Motley Fool’s Stock Advisor team, who have identified 10 stocks with strong potential for future growth. While NVIDIA was not on this list, the track record of the Stock Advisor service showcases its success in outperforming the S&P 500 since 2002.
It is essential to note that the author of the original article, Danny Vena, has positions in NVIDIA, and The Motley Fool recommends and holds positions in the company. The Motley Fool also has a disclosure policy in place. This news contributed to the surge in NVIDIA’s stock price on Tuesday.
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