One of the biggest problems chip stock Nvidia (NASDAQ:NVDA) has suffered in the last year was the issue of selling components to China. Limited by federal rules, Nvidia scrambled to get something together that would let it keep its substantial Chinese business while not running afoul of the U.S. government. The latest release looks to be an answer, and investors applauded, sending Nvidia shares up fractionally in Thursday afternoon’s trading.
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The new chip in question, the RTX 4090D, is supposed to represent what Nvidia calls a “…quantum leap in performance efficiency and AI-driven graphics.” It runs on 24 gigabytes of G6X video memory and is powered by the comparatively new Ada Lovelace architecture. Despite this clearly advanced nature, though, it conforms to all applicable laws and statutes regarding dealing with China right now, a move made particularly tight in the wake of new export controls. That kept several of Nvidia’s current products out of the market, and also required Nvidia to scramble to develop new chips that could thread the needle between “useful” and “legal.”
It’s Also Huge in Gaming
While a lot of focus for Nvidia has been around artificial intelligence development, Nvidia always had a connection to the gaming market. In fact, new reports note that the Nvidia GeForce Now game streaming site has been ramping up well. The site now plays host to over 1,800 titles. This week alone saw 46 new titles, previously found on Xbox and PC Game Pass platforms, added to GeForce Now, including “Control,” “Edge of Eternity,” and “Destroy All Humans.” That gives Nvidia another worthwhile market to keep a presence in, and a stable cash cow that can fund future development elsewhere.
What is the Fair Price for Nvidia Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 31 Buys and three Holds assigned in the past three months, as indicated by the graphic below. After a 240.19% rally in its share price over the past year, the average NVDA price target of $661.35 per share implies 33.05% upside potential.
