NVIDIA (NVDA) Stock in an ‘Optimistic Zone’

The American multinational tech giant NVIDIA Corporation (NASDAQ: NVDA) remained among the preferable stocks for investors. Given NVDA stock price is much lower than it’s all time high, it is definitely available at a discounted price. Moreover, except for several factors here and there, the future potential for the stock is considerably good given its outlook. 

NVIDIA Stock Price Chart Movement

Source: TradingView

NVDA stock slipped its leg this year and tested the lows. The year resulted in a major setback because the stock fell nearly 45%. Finally, this month, a rounding bottom formed on the chart; the price rebounded after that and recovered 52% in the last month. The V-pattern recovery laid the price to regain the bull’s momentum. The immediate support is $150, and the hurdle is $195. Therefore, the price is hovering inside this range.Several last months had been dramatic for NVDA stock price where it witnessed momentary steep surges and declines. In October this year, NVIDIA got impacted after the export control rules imposed within the United States in order to restrict export to China. 

However, during November 2022, the stock price jumped two times: over 14% on November 10th and over 8% recently on 30th November 2022. 

In November 2021, the GPU manufacturer revealed its metaverse strategy which resulted in its stock price surge. The rally continued and made NVDA stock attaining its all time high of 325.89 USD. 

Future Potential Sectors for NVIDIA

The chipmaker considered the data center business the ‘center of its business’ for quite some time. The adoption of data center graphics processing units (GPUs) of NVIDIA resulted in an impressive revenue. During the quarter, the revenue from the segment rose to 3.8 billion after a 31% year over year surge. 

Given the future outlook, the company expects the data center GPUs sales to achieve revenue up to 30 billion USD. This would be the most likely scenario, if the very much likely player’s entry within the market disturbs the equation in upcoming years. 

Apart from this, the cloud gaming sector is also on continued increase. It’s worth noting, however, that the gaming business of the software company remained quite low. In terms of numbers, the overall revenue from the sector for the last quarter was 1.6 billion USD, about 51% down from the last year. 

But the potential growth of cloud gaming is going to boost the business for the chipmaker. This year itself, the sector witnessed a surge of 74% from last year and generated about 2.4 billion USD in revenue and reported a paid user base of 31.7 million gamers. 

In addition, the soaring adoption and demand of the automotive segment is clearly visible and expected to impact the company’s related business. This year itself, the revenue for the automotive and embedded revenue for NVIDIA was 251 million USD, an increase of 86% in a year. 

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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