Stock Analysis & Ideas

Nvidia Stock (NASDAQ:NVDA): High-End Graphics Cards Stir Up Excitement

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Nvidia’s latest tech components aren’t cheap, and some skeptics might call them cost-prohibitive. Yet, discerning gamers want the cream of the crop, and they’ll dig deep into their wallets to get it – or at least, that’s what Nvidia’s stakeholders are counting on.

While the stock market swooned on September 20, one tech titan’s press release seemingly got swept under the rug. Yet, big news from Nvidia (NASDAQ:NVDA) is bound to stir up the graphics card market and perhaps put some dollars in the shareholders’ pockets. I am bullish on Nvidia stock.

California-based Nvidia makes graphics cards that gamers crave. Of course, the company’s offerings aren’t limited to gaming graphics cards, and we’ll soon explore Nvidia’s just-revealed product for self-driving technology aficionados.

Yet, Nvidia’s bread and butter is graphics cards, plain and simple. At the same time, there’s nothing plain or simple about Nvidia’s gaming cards, as they’re consistently top-of-the-line and ultra-powerful. Sure, they’re pricey, but experienced gamers won’t tolerate slow gameplay – and in all likelihood, they’ll turn to Nvidia once again, regardless of the cost.

Nvidia is Making a Strong Statement in Autonomous Driving Tech

Again, there’s more to Nvidia than just graphics cards – but the company has to prove this. That’s exactly what Nvidia’s doing, though, as it just introduced DRIVE Thor, which could best be described as an all-in-one autonomous driving unit.

The idea behind DRIVE Thor, according to a Reuters report, is to “centralize autonomous and assisted driving as well as other digital functions including in-car entertainment.” Consequently, implementing DRIVE Thor should help to reduce the number of chips and the twisted mess of cables in autonomous vehicles. Plus, it could weigh less, consume less energy, and potentially provide savings in terms of the overall system cost.

While the company just unveiled DRIVE Thor, Nvidia already garnered its first customer for this system: China-based ZEEKR, which is owned by Geely (OTC:GELYF). Nvidia stockholders should keep an eye out for further developments regarding DRIVE Thor; if the company secures some U.S.-based automotive clients for this system, it would be a huge win for all parties (except the competitors, of course).

Nvidia’s Latest Series of Graphics Cards are Literally a Game-Changer

Self-driving technology will help to power a new generation of vehicles, but what will power the tech that today’s and tomorrow’s gamers depend on? As usual, we can look to Nvidia for the answer. The competitors ought to feel threatened if they don’t already. On September 20, Nvidia announced in a blog post its brand-new GeForce RTX 40 Series graphics cards, powered by next-generation gaming graphics chip architecture known as Ada Lovelace.

Today’s immersive gaming experiences require systems that, to be honest, are resource hogs. To eliminate lag, gamers need power, and RTX 40 delivers it in spades. When Nvidia’s developers brag that the RTX 40 Series brings you “the fastest GPUs in existence,” they’re not kidding around.

How speedy are these graphics cards? As Nvidia explains, gaming performance in “the latest titles” can actually double. However, “by harnessing DLSS 3 and new Ada innovations, developers can boost performance by up to 4X in fully ray-traced titles.”

What about creative apps? No problem there, as Nvidia’s got you covered: the RTX 40 cards “provide up to 2X the performance in 3D rendering, video export speed, and AI tools,” the company boasts.

Nvidia’s New Graphics Cards Could be a Major Revenue Generator

Clearly, Nvidia put a lot of time, effort, and love into these tech components. Will they pay off for the company and its loyal shareholders? Only time will tell, but there are reasons to believe that Nvidia’s GeForce RTX 40 Series graphics cards could boost the company’s top and bottom lines.

That’s because Nvidia’s charging a pretty penny for these high-end cards. Reportedly, the RTX 4090 will become available on October 12 and will cost $1,599. As for the slightly less high-end but still powerful RTX 4080 cards, there will be two versions costing $899 and $1,199, respectively; these will be available for purchase in November.

Those price points might have taken you aback for a moment. Non-gamers could probably never imagine paying $899, not to mention $1,199 or $1,599, for just one part of a gaming system.

What prospective investors need to remember is that you don’t have to understand or appreciate gaming culture in order to profit from it. Personally, I wouldn’t spend $1,200 for an iPhone – but there are plenty of people who will gladly pay this much for Apple’s (NASDAQ:AAPL) latest smartphone iteration.

So, before you judge Nvidia for charging high prices, bear in mind that these are premium products for discriminating gamers with discretionary income to spare. This might not describe you, but it describes somebody, and that’s what matters to Nvidia.

What is a Good Price for NVDA Stock?

Turning to Wall Street, NVDA has a Moderate Buy consensus rating based on 23 Buys and nine Holds assigned in the past three months. The average Nvidia price target is $206.39, implying 56.6% upside potential.

Conclusion: Should You Consider Nvidia Stock?

Nvidia is a leader in gaming graphics cards, and its RTX 40 Series will help keep the company far ahead of its competition. On top of that, Nvidia’s DRIVE Thor system could simplify and, ultimately, redefine autonomous vehicle systems in the 2020s. Even if you’re not a tech-component aficionado, you can still take advantage of Nvidia’s relentless drive to innovate. It’s as simple as picking up a few shares of NVDA stock and trusting Nvidia’s developers to do what they do best.


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