<p>If you like 5G shares as much as I do, you’re probably a big fan of Nvidia (NASDAQ: NVDA), NVDA shares and the semiconductor company’s commitment to innovation and state of the art technology.
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While the stock market shook in February, Nvidia just kept rolling. The Nvidia share has increased by 11% since the beginning of last month thanks to a solid earnings report and excellent comment from analysts.
That said, let’s take a closer look at the NVDA stock – which is one of my best growth investor recommendations right now.
NVDA stocks by numbers
There is no doubt that 2018 was not a good year for Nvidia. The stock fell sharply during the back half of the year and lost almost a third of its value by 2019.
The past, however, is the past. And the NVDA stock reached a full-time high of about $ 315 in mid-February before slipping slightly due to the coronavirus from China among the wider sales in the market.
In addition, fourth-quarter earnings were NVDA’s revenue of $ 3.31 billion – an increase of 41% from the previous year – and earnings of $ 1.89 per share. The company said it had better revenues than expected, as well as solid growth from its gaming business.
Going forward, the company expects revenue of $ 3 billion – plus or minus 2% – for the first quarter, which somewhat beats analysts’ expectations. However, this is a change from the company’s previous guidance due to possible headwinds from coronavirus.
With that said, it’s no wonder the bulls love NVDA shares.
Current catalysts for Nvidia
In addition, one of the biggest reasons to like NVDA right now is its graphics processing unit (GPU). This is the signature technology that sets Nvidia apart in the semiconductor space.
GPU enables modern video games and computer generated graphics in movies. So with the video game industry likely to generate about $ 152 billion in 2019 and grow by about 10% per year, Nvidia is set to make money in the long run.
Currently, about half of NVDA’s profits come from gaming, and it is expected to grow in the coming years.
But that’s not all.
Nvidia’s GPU chips are also in demand in cryptocurrency mining and machine learning. Machine learning is the foundation of artificial intelligence (AI), which is an exciting wave of technology – including products such as autonomous vehicles – that will grow in the 21st century.
But I’m most excited about Nvidia’s commitment to implementing 5G technology. 5G technology will make our “smart” devices faster and smarter. It makes wireless internet connections as fast as they are connected to a modem. And it will make virtual reality technology much more accessible. In turn, this development will look at sports better and everyday chores such as seeing your doctor more comfortably.
The bottom line of the NVDA stock
After a rough patch in 2018, the NVDA share is back on track and looks better than ever. The company’s efforts in 5G technology, its state-of-the-art game processors and its work in AI put Nvidia at the forefront of some of the most exciting and important technologies today.
Louis Navellier had an unconventional start, as a student who accidentally built a market-beating stock system – with returns equal to Warren Buffett. In his latest achievement, Louis discovered the “Master Key” to take advantage of the greatest technological revolution of this (or any) generation. Louis Navellier may include some of the above securities in one or more of its newsletters.