Motley Fool analyst Travis Hoerman recommended Nvidia Corp. (NVDA) as the AI stock to buy with $1,000 on October 10, 2024. NVDA closed at $134.81 USD, per Yahoo Finance. CNN's Fear and Greed Index stood at 16 that day.
Hoerman published the recommendation in his article "The Artificial Intelligence (AI) Stock I'd Buy With $1,000 Before the Market Bounces Back."
Market Sentiment Shows Extreme Fear
CNN's Fear and Greed Index reached 16 on October 10, 2024, signaling extreme investor fear. Equity exposure fell amid economic uncertainty and geopolitical tensions, per market data.
NVDA trading volume rose 25% above its 30-day average, Nasdaq data showed. The Nasdaq Composite fell 2.5% for the week ended October 10. The S&P 500 dropped 1.8%.
Nvidia Supplies GPUs for AI Workloads
Nvidia Corp. supplies graphics processing units (GPUs) for AI model training and inference. Nvidia reported $30 billion USD in revenue for the fiscal quarter ended August 28, 2024, up 122% year-over-year, per SEC 10-Q filing.
Over 4 million developers use Nvidia's CUDA software platform, according to the Q2 2024 investor presentation. Gartner named Nvidia a leader in its 2024 Magic Quadrant for Cloud AI Developer Services.
Blackwell Platform Advances AI Inference
Nvidia unveiled the Blackwell GPU platform in March 2024. Blackwell delivers 30 times faster real-time inference than the Hopper generation, Nvidia CEO Jensen Huang said at GTC 2024.
The platform supports large language models and generative AI. Production uses TSMC's 4nm process node, Nvidia stated. Major cloud providers count as early adopters.
NVDA Valuation Amid Volatility
NVDA shares fell 8% in the week ended October 10, 2024. The stock traded at 45 times forward earnings, Yahoo Finance data showed.
Hoerman forecasts NVDA at $200 USD per share by 2026, assuming 40% compound annual revenue growth through 2027. $1,000 USD bought 7.4 shares at the $134.81 USD close.
Retail Investors Eye NVDA as AI Stock
Robinhood users added NVDA to watchlists at high rates on October 10, 2024. LunarCrush Galaxy Score for NVDA reached 85 out of 100.
NVDA accounted for 15% of AI stock searches on Robinhood. Palantir Technologies Inc. (PLTR) and Arm Holdings plc (ARM) saw increased interest.
Federal Reserve minutes from October 9, 2024, indicated steady policy. CME FedWatch Tool priced a 25 basis-point rate cut by December 2024.
AI Chip Competition Intensifies
Advanced Micro Devices Inc. (AMD) launched MI300X AI accelerators in 2024. Intel Corp. introduced Gaudi3 chips for AI inference.
Nvidia holds 80% market share in AI accelerators, per Omdia Q3 2024 report. Data center orders reached $200 billion USD through 2025.
Nvidia reported 55% gross margins for Q2 fiscal 2025. U.S. export controls to China cut sales by 5% that quarter.
Wall Street View on NVDA AI Stock
Wall Street consensus targets $150 USD for NVDA by December 2024, FactSet data showed. JPMorgan Chase & Co. raised its target to $160 USD on October 8, 2024.
Nvidia's data center revenue hit $26.3 billion USD in the quarter ended August 2024, up 154% year-over-year. StreetAccount projects $32.5 billion USD for the November 2024 quarter.
Bespoke Investment Group data indicates stocks rebound 70% of the time within three months after Fear and Greed Index readings below 20. Motley Fool positions NVDA as a core AI stock through volatility.