Nvidia's Impressive Cash Generation Expected to Fuel Stock Buyback, Analyst Predicts
Money | June 29, 2024, 2:23 p.m.
Tech analyst Ben Reitzes predicts that Nvidia, led by Jensen Huang, will continue to thrive in the AI chip market due to its innovative hardware and software approach. With a $160 price target on Nvidia stock, Reitzes foresees a 30% gain, highlighting the company's potential for significant shareholder rewards. Nvidia's consistent product innovation gives it an edge over competitors, ensuring developers and customers can plan for future upgrades. Despite recent market fluctuations, Nvidia's stock has seen a 150% increase this year, with projections for continued growth. Reitzes believes Nvidia could generate $270 billion in cash over the next three years, potentially leading to substantial returns for shareholders. While Nvidia has already initiated stock buybacks and increased dividends, Reitzes suggests that further buybacks could be on the horizon. Huang affirms Nvidia's position as a leader in AI training chips, promising continued success with the upcoming Blackwell system.