01.12.2024 13:45:00

Prediction: This Artificial Intelligence (AI) Chip Stock Is Going to Skyrocket After Dec. 3

The market for artificial intelligence (AI) chips has been dominated by Nvidia, which explains why the semiconductor giant recently delivered another stellar set of results for the third quarter of fiscal 2025 (which ended on Oct. 27).The chipmaker's revenue shot up a whopping 94% year over year to $35.1 billion, while its immense pricing power helped it more than double its adjusted earnings to $0.81 per share. However, the market's reaction to Nvidia's outstanding results has been lukewarm. In fact, the stock has lost momentum and is down since releasing its latest report.One reason why that may be the case is because of Nvidia's expensive valuation and worries that the company's growth trajectory is slowing down. The margin pressure that's going to be created by the quick production ramp-up of Nvidia's new generation of AI chips is probably another reason why the stock has been on shaky ground despite its impressive report.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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