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Should You Invest in Nvidia Stock Now?

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12 months ago

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Nvidia (NVDA) has been making waves in the stock market, fueled by its advancements in artificial intelligence (AI). The company’s fiscal 2024 first-quarter results, released on May 24, surpassed Wall Street’s expectations and led to a staggering 25% surge in its stock price the following day.

With year-to-date gains reaching an impressive 166%, investors are now pondering whether it’s too late to buy this high-flying semiconductor stock. Before we delve into that question, let’s explore why Nvidia received such a resounding market response to its latest quarterly report. 

Nvidia’s Q1 2024 revenue of $7.2 billion exceeded the company’s initial guidance of $6.5 billion by a significant margin. Additionally, its adjusted earnings per share for the quarter jumped 28% compared to the previous year. This remarkable growth can be attributed to Nvidia’s strong pricing power in the data center GPU (graphics processing unit) market, driven by the increasing demand for AI infrastructure in training and inferencing.

CSPs (cloud service providers) worldwide are eagerly adopting Nvidia’s flagship Hopper and Ampere architecture GPUs to meet the rising interest in AI applications from both enterprises and consumers. Major CSPs, including Microsoft Azure, Google Cloud, and Oracle Cloud Infrastructure, have already announced the availability of Nvidia’s H100 on their platforms. This heightened demand for AI chips has prompted Nvidia to increase its supply through additional orders at its foundry partner.

Nvidia’s data center business experienced substantial growth in the last quarter, with revenue increasing by 14% year over year to a record $4.28 billion. The company’s guidance for the current quarter is even more optimistic, projecting revenue of $11 billion, surpassing analysts’ expectations by at least 50%. Furthermore, Nvidia’s non-GAAP gross margin is expected to reach 70%, a significant jump from the previous year’s 46%. These positive indicators suggest that Nvidia’s earnings are poised to experience significant growth in the current quarter.

Considering Nvidia’s exceptional guidance and the immense potential of generative AI, which is just beginning to gain traction, there is ample opportunity for the stock to deliver further upside. According to Polaris Market Research, the generative AI market could witness annual growth of 34% over the next decade, eventually reaching $200 billion in annual revenue by 2032. Nvidia’s GPUs are expected to play a vital role in driving the proliferation of generative AI, further boosting demand for the company’s products.

The expanding market for AI workloads is projected to grow from under $17 billion annually in 2022 to over $227 billion annually by 2032. With Nvidia’s strong position in the AI chip market, there is considerable room for growth in its data center business. Analysts have adjusted their growth expectations accordingly.

Despite Nvidia’s current stock price trading at a high multiple of 202 times trailing earnings, the company’s strong guidance and long-term potential justify this valuation. Its forward earnings ratio of 53 indicates a significant jump in bottom-line profitability, aligning with the anticipated margin gains. While the stock may seem expensive, the prospects for benefiting from the adoption of AI make it an attractive investment opportunity.

In conclusion, considering Nvidia’s recent performance, impressive guidance, and the burgeoning demand for AI technologies, it appears that investing in Nvidia stock still offers potential upside. However, investors should be mindful of the premium valuation and the long-term nature of the investment.

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Step-by-Step Guide: Casting Meta Quest 3 to Your TV | Easy Setup

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2 months ago

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March 28, 2024

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Experience the immersive world of VR with Meta Quest 3 (or Quest 2 or Quest Pro) and never leave anyone behind. Cast your VR adventures to Chromecast-enabled TVs, allowing friends and family to join in on the excitement. Watch games, videos, and more together, creating unforgettable memories

How to Cast Meta Quest 3 to TV: Step-by-Step Guide

Meta Quest 3 users can easily cast their VR experience onto a TV for a shared viewing experience. Follow these optimized steps to seamlessly cast your Meta Quest 3 to your television:

Step 1: Ensure you have the Meta Quest app installed on your phone and are logged in to your Meta account.

Step 2: Confirm that your Quest 3, phone, and TV are connected to the same Wi-Fi network.

Step 3: Power on your Quest 3 and wait for the main menu to load.

Step 4: Navigate to the bottom bar and select “Camera.”

Step 5: From the Camera menu, choose “Cast.”

Step 6: A list of available devices will appear. Select your TV or Chromecast.

Step 7: Wait briefly for the casting to initiate. If your TV doesn’t appear, it may not be compatible or connected to the same Wi-Fi network.

Step 8: Once connected, your TV will mirror your Quest 3 display, allowing others to view your VR experience.

Step 9: Be cautious of personal content that may be displayed during casting.

Step 10: To stop casting, return to the Camera menu, select “Cast” again, and choose “Stop Casting.”

By following these steps, you can effortlessly cast your Meta Quest 3 to your TV for an immersive shared experience.

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Gaming

PlayStation 5 Pro: Rumors, Specs & Release Date Speculation

With rumors swirling about a potential PlayStation 5 Pro, we delve into all the available information to give you insights into what Sony might have in store.

Published

2 months ago

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March 18, 2024

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With rumors swirling about a potential PlayStation 5 Pro, we delve into all the available information to give you insights into what Sony might have in store.

Sony has yet to confirm the existence of the PS5 Pro, but reports from Insider Gaming, known for leaks, reinforce the speculation. It’s rumored that Sony aims to follow a strategy similar to the PS4 Pro, introducing interim consoles for those seeking upgraded hardware.

Is the PS5 Pro Real? What is Project Trinity?

As of now, the PS5 Pro remains unconfirmed by Sony, labeled as speculation. However, Tom Henderson, a reliable source for PS5 Pro news, has hinted at its development under ‘Project Trinity’ since early 2022.

PS5 Pro Specs Speculation

Leaked details suggest significant improvements for the PS5 Pro, including a 28% boost in system memory speed and a ‘High CPU Frequency Mode’ for enhanced processing power. The GPU is expected to render graphics 45% faster, with improved ray-tracing capabilities.

PS5 Pro Release Date Speculation

Insider Gaming hints at a Fall 2024 release for the PS5 Pro, based on leaked information from reliable sources like Tom Henderson. This aligns with Sony’s previous console release timelines.

Could the PS5 Pro Be More Powerful?

The PS5 Pro aims for better graphical performance without alienating existing console users. Expect improved FPS at 4K, a performance mode for 8K, and advanced ray tracing.

PS5 Pro Speculated to Use New DLSS-like Tech

Reports suggest Sony’s proprietary upscaling tech, ‘PlayStation Spectral Super Resolution’ (PSSR), akin to Nvidia DLSS or AMD FSR, leveraging machine learning for enhanced game resolution.

Stay tuned for official announcements from Sony regarding the PS5 Pro and its features.

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Tech

Ayaneo 2S Handheld: A Competitor for the Asus ROG Ally

Published

12 months ago

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June 1, 2023

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Ayaneo’s latest handheld device, the Ayaneo 2S, is poised to rival the Asus ROG Ally in the gaming market. Alongside this release, Ayaneo has also announced an update to its more affordable handheld, the GEEK 1S.

It seems that every week brings a new handheld device to discuss, and Ayaneo is back in the spotlight with their latest offering. Powered by AMD’s newest Ryzen 7000 laptop chips, the Ayaneo 2S stands strong. However, it is not alone in its release, as it is accompanied by a lower-tier model called the GEEK 1S.

Building upon the success of the previous AOKZOE model, Ayaneo has equipped the upgraded Ayaneo 2S with an AMD 7840U processor, featuring Radeon 780M graphics. This APU is quite similar to the Z1 Extreme found in the Asus ROG Ally.

Although we have not had the opportunity to test a system with this chip yet, if the performance of the Z1 Extreme is any indication, the Ayaneo 2S is expected to deliver outstanding power and handle demanding tasks with ease. Our tests revealed that the Z1 Extreme excelled in running Forza Horizon 5 at various settings, and it was further enhanced by supersampling.

However, similar to the Z1 Extreme, the 7840U requires specific patches, firmware, and drivers to optimize performance. Just like Valve’s AMD Van Gogh APU on the Steam Deck, it takes some time for game developers to optimize their titles for these custom configurations.

With a more generic APU on board, the Ayaneo 2S has the potential to surpass the ROG Ally in terms of performance when it officially launches.

On the other hand, the GEEK 1S is positioned as a “budget-friendly” option. While it shares the same APU as the 2S, it offers a maximum of 32GB of RAM and 512GB SSD storage. Meanwhile, the 2S starts at 16GB of RAM and 512GB SSD storage, with options to upgrade to 32GB and 64GB of RAM.

Pricing for the Ayaneo 2S and GEEK 1S:

Ayaneo has introduced these two new handhelds on its Indiegogo page, offering multiple versions. Early bird pricing for the Ayaneo 2S starts at $949, equivalent to approximately 12,552 Hong Kong dollars or around $1600 USD. Upon its official launch, the Ayaneo 2S will have a starting price of $1139 USD and go up to $1999 USD. The higher-priced versions also boast unique designs and come with 4TB of storage and 64GB of RAM.

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