Time to Sell NVIDIA?

Over the past few years, NVIDIA (NVDA) has worked hard to achieve a leading position in the graphics market. Sales are increasing in the company’s core gaming market mainly due to the launch of superior graphics cards based on its latest Pascal architecture. However, stockholders are much more excited about the various emerging industries that the company is well-positioned to benefit from.

Various emerging industries such as deep learning, artificial intelligence, and driverless cars, can all see huge growth in the imminent decade.
In the most recent quarter, the company shared record results mainly due to its strong presence in these emerging sectors.

NVIDIA’s high-end graphics processing chips have gained huge benefits from the rise of video-game trends like multi-player online games as well as e-sports, and it will likely endure to do so. This portion of the company’s business alone has led to amazing double-digit revenue growth in the gaming segment throughout the prior several quarters.

On the other hand, NVIDIA formerly revealed Titan X to substitute the previous generation GeForce GTX Titan X. This new advanced Titan X is based on a moderately disabled version of a chip called GP102 running at a base frequency of 1417 MHz and a boost frequency of 1531 MHz.
Time to Sell NVIDIA?
Image by JacekAbramowicz / Pixabay
Moreover, is also comes with 12 GB of high-performance GDDR5X memory.

However, as per leaked information, NVIDIA is on its way to launch GTX 1080 Ti that will include 3,328 graphics cores, running at a base frequency of 1503 MHz and at a whooping boost frequency of 1623 MHz. But, it is likely that the company will use a cheaper and slightly slower version of 12 GB GDDR5X memory.

As an outcome, in terms of gaming performance, it is projected that the higher clock speeds will permit the company to deliver somewhat quite close to its $1,200 Titan X at comparatively less and accessible prices. Moreover, the launch of GTX 1080 Ti should provide NVIDIA the opportunity to enhance its merged ASPs.


Going forward, NVIDIA has plenty of opportunities to capitalize on. The company’s long term future looks great and although the stock may have rallied way ahead of its fundamentals, the company’s growth can easily justify its valuation. Investors should probably wait for a pullback and accumulate NVIDIA under $60 for a better margin of safety and higher returns in the long run. Rest assured, I do think NVIDIA will continue growing for years to come.
Published on Sep 29, 2016
By Akshansh Gandhi

Copyrighted 2020. Content published with author's permission.

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