"Indeed, it's probably just a matter of time before the GPU king cracks the $10 trillion market cap milestone. And while shares have minted many investors with significant gains in recent years, I do think that growth expectations have become high enough that it'll take more than a good quarterly earnings report and upbeat guidance to move the needle by enough to keep up that blistering pace the firm has maintained over the past two years."
"The firm is best known for licensing its efficient semi architecture, which has a pretty steady royalty cash flow stream coming in. Undoubtedly, the business has proven to be very unique and quite lucrative. Indeed, it seems like every firm has the incentive to go down the Arm route these days. And it's not just smartphones or PCs, but data centers and AI chips where Arm could expand its reach."
Nvidia is a generational performer with a $4.32 trillion market capitalization and potential to reach $10 trillion. Shares have delivered significant gains, yet elevated growth expectations may require more than strong earnings and guidance to sustain the prior rapid pace. Some investors expect an unexpectedly large earnings beat similar to Oracle's recent result, though such a surprise is technically possible but unlikely to maintain momentum. Smaller semiconductor companies may offer greater upside relative to Nvidia due to lower expectations. Arm Holdings is a British semiconductor licensor with steady royalty cash flows and expansion opportunities into data centers and AI chips.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]