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Tuesday, January 19, 2021

NVDA Stock Rises Over 120%; Analysts Say It Deserves Its Ultra-Premium Pricing; Here’s Why

NVIDIA (NASDAQ: NVDA) stocks might not have a perfect Q3, but there is still room for improvement. That is what makes NVDA stocks great right now.

NVIDIA CEO Jensen Huang recently reported that NVDA stocks were “firing on all cylinders” in the last quarter ending in October. And this might just be true. The company’s revenue and EPS (Earnings Per Share) went up by about 57%. It is almost 63% higher on a year-over-year basis. NVDA stocks have easily surpassed the bar that it set a few months back and is currently setting a fresh quarterly record for sales.

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NVIDIA is a semiconductor stock that designs and manufactures computer chips and related components. They’re a part of the tech sector, but since they are also manufacturers, their business is rendered cyclical. Analysts believe that NVDA stock’s current momentum will take a short breather recently. So, for about a potential 20 times FY2020 sales, it seems reasonable that NVDA stocks are expensive right now.

NVDA Stocks To Grow More In 2021

That is not all. Some investors even believe that this upswing of NVIDIA is just getting started. With loads of hardware upgrades and a ton of latest tech innovations underway, NVDA stock prices are expected to skyrocket very soon.

NVIDIA finds its core strength in the gaming sector and the data center segment that made up about 88% of NVDA stock’s revenue in 2020 Q3. Sales in those two markets have increased by 37% and 162% respectively than last year.

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Huang further mentioned that they will work on the areas that have seen a decline in Q3 owing to the pandemic. Remote work slowed down the adoption of fresh tech and the automotive segment, clarifies Huang, by almost 27% and 23% respectively.

Also, traditional sales have been hampered in the last quarter. Therefore, there is reason to believe that even with an extraordinary performance in Q3, there is room for more improvement of NVDA stocks in 2021.

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