In the wake of a resurgence in the cryptocurrency market, NVIDIA Corp. (NASDAQ:NVDA), recognized for its pivotal role in data centers, AI, and crypto asset creation, is projected to see over 100% earnings growth this year. The company's stock, which often thrives in a buoyant crypto market, is also linked to the declining inflation rate and currently carries a Zacks Rank #1 (Strong Buy).
NVIDIA, a prominent player in the Semiconductors and semiconductor Equipment industry, is expected to yield a high return on invested capital, according to InvestingPro Tips. The favorable outlook is also reinforced by the company's strong earnings, which should allow the management to continue dividend payments, a practice they have maintained for 12 consecutive years. The company's net income is expected to grow this year, and analysts anticipate sales growth, with 36 analysts having revised their earnings upwards for the upcoming period. You can find more of these insights on NVIDIA at InvestingPro, which offers numerous additional tips for investors.
The past year's downturn, brought on by the Fed's stringent monetary policies and a substantial increase in the benchmark lending rate, saw the cryptocurrency market bounce back this year. This recovery, however, has not been without turbulence. Market volatility has followed in the wake of Jerome Powell's warning of an impending additional rate hike and an extended high-interest phase.
This warning was issued in Powell's post-FOMC meeting statement and has led to a surge in the 10-year U.S. Treasury Note yield to 4.8%. The heightened yield has reignited fears of an approaching recession which has had negative impacts on major cryptocurrencies such as Bitcoin and Ethereum.
Yet, NVIDIA's projected earnings growth signifies a potential silver lining for investors. The company's GPUs are essential for crypto asset creation, a significant contributor to its success, and a factor that could potentially offset some of the negative impacts of market volatility.
InvestingPro's real-time data indicates NVIDIA's market cap stands at a staggering 1110.0B USD. The company's P/E Ratio is at 106.48, and its P/E Ratio (Adjusted) for LTM2024.Q2 is projected at 101.2. Additionally, NVIDIA has seen a revenue growth of 9.9% in LTM2024.Q2, with a gross profit of 21.12B USD. The company's operating income, adjusted for LTM2024.Q2, stands at 10.8B USD, indicating a strong financial performance.
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