Nvidia’s (NASDAQ:NVDA) CEO Jensen Huang answered some pertinent questions from shareholders at the chip giant’s meeting yesterday. During the event, Huang addressed a key area of concern regarding how Nvidia plans to rise up to the competition from other chipmakers and startups.
Nvidia’s Strategy to Counter Competition
Nvidia has cornered a market share of more than 80% in AI chips. CEO Jensen Huang outlined the company’s strategy to maintain its position, highlighting its shift from a focus on gaming to a data center-focused approach. Additionally, Huang mentioned that the company aims to create new markets for its AI chips, such as industrial robotics, and is targeting partnerships with all computer makers and cloud providers.
Huang also claimed that Nvidia’s AI chips offer the “lowest total cost of ownership” due to their performance and efficiency. He stated that Nvidia has achieved a “virtuous circle,” where the company’s improvements to its platform attract an increasing number of users, further expanding its user base.
Moreover, the company’s shareholders approved a nonbinding vote on executive compensation. Nvidia’s executives will now receive a combination of salary and restricted stock units.
NVDA’s Market Cap Crosses $3T
Nvidia’s market cap has once again surpassed $3 trillion following a three-day losing streak. The volatile movements are likely due to concerns about Nvidia’s valuation and profit-taking, rather than worries about its dominance in AI chip technology. Overall, over the past year, NVDA stock has been on a rising trajectory and has skyrocketed by more than 200%
What Is the Target Price for NVDA?
Analysts remain bullish about NVDA stock, with a Strong Buy consensus rating based on 38 Buys and three Holds. The average NVDA price target of $157.86 implies an upside potential of 24.9% from current levels.
