After 60% Gain in 2015, is NVIDIA Still a Buy?NVDA).
NVIDIA was a standout outperformed in 2015 as its shares escalated approximately 64 percent, sturdily beating the broader S&P 500 mainly due to the mounting demand for the company’s graphics cards.
NVIDIA also expects the same for 2016 as there are various reasons to be progressive.
The two new products HTC’s Vive and Facebook’s Oculus Rift, based on virtual reality are expected to hit the market by mid 2016. The devices have the potential to flash the demand for the company’s high-end graphics cards. Both the headsets, the Vive and Oculus Rift, need high powered PCs with powerful graphics cards to function.
To operate Oculus Rift, required PC should be equipped with at least NVIDIA’s GTX 970 graphics card, available in market for around $300. It is not very cheap, but a lot cheaper than the company’s most expensive card. At comparatively higher price tags, NVIDIA’s GTX 980 Ti and Titan will propose customers a more captivating experience. All in all, a desktop PC capable of supporting the Vive or Oculus Rift will cost around $1,000 and up.
Keeping in mind this reason, the company proposed a warm assessment of virtual reality this year. Still, early imitations of the technology have been virtually positive, and it is possible that it could turn into a source of surprisingly demand for NVIDIA’s graphics cards, specifically in the other half of this year.
While the market is off to a bearish start in 2016, I think NVIDIA can be a good pick for investors this year. The stock has multiple growth drivers, and although it is expensive, I think investors should consider adding it to their portfolios.
Published on Feb 4, 2016By Akshansh Gandhi