The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Summary:

I Know First still touts a very bullish 12-month market trend forecast score of +345.89 for Nvidia’s stock.

This is in spite of NVDA’s 38.35% YTD price return.

This hyper-optimism of I Know First must be due to the undisputed leadership of Nvidia in GPU-centric Artificial Intelligence hardware and platforms.

The recent launch of the $99 Jetson Nano Developer Kit and $129 Jetson Nano Module likely made Nvidia the early leader in edge AI computing.

The Jetson Nano Module has current commercial/industrial applications. For example, this $129 Nvidia edge AI hardware can be marketed in the fast-growing training and video surveillance industries.

Nvidia’s (NVDA) stock price of $184.70 is notably higher than what it was when I rated the stock as a buy last February 18 ($156). I am reiterating my buy recommendation for NVDA. I am highly confident that the $129 Jetson Nano Module and $99 Jetson Nano Developer Kit made Nvidia an early leader in edge AI (Artificial Intelligence) computing.

You should raise your bets on NVDA because it is now prepping the world for autonomous machines for mainstream adoption. The $99 Jetson Nano Developer Kit can let any amateur or professional coder program different applications that can utilize the inference and deep learning power of an Edge AI computer measuring only 69.6mm x 45mm.

Source: Nvidia

The $129 Module and the $99 Developer Kit Jetson Nano versions both use a 128 CUDA cores Maxwell GPU (graphics processing unit), 4 GB LPDDR RAM, and quad-core Cortex-A57 ARM processor. It can be used for computer vision, facial recognition, machine learning, and other complex on-device (not cloud computing) AI tasks.

Source: Nvidia



I rate NVDA as a buy because these cheap Jetson Nano computers have a massive total addressable market. As per the analysis of Research and Markets, the edge AI hardware market is growing at 20.6% CAGR. From 610 million units this year, there will be 1.559 billion edge AI hardware products (like the Jetson Nano) by 2024.

The Potential Economic Benefit

It is easy to guesstimate the future revenue contribution of these new Jetson Nano AI computers. The bigger potential for now lies in the commercial-ready $129 Jetson Nano Module. This is an edge AI computer that can easily sell 5 million units/year to the fast-growing $30 billion global video surveillance industry.

Source: Statista

5 million units x $129 = $645 million. This potential revenue could more than offset the lost revenue from cryptocurrency miners. By selling very affordable edge AI computers, Nvidia could likely have a new $1 billion/year tailwind from Jetson Nano products. These products can become as pervasive as smartphones because they retail for just $129 and $99.

My $1 billion/year tailwind guesstimate is reasonable. The Jetson Nano computers can be used in other industries. Edge AI computers can be customized to work in autonomous vehicles like cars, drones, boats, and military planes. The Jetson Nano can also help factory and domestic robots computer vision/deep learning.

My fearless forecast is that a $129 Jetson Nano Module can be very useful inside Virtual Reality and Augmented Reality headsets or googles. They can help blind people navigate the streets (and building interiors) better and safer. For the near-term, a Jetson Nano-powered Augmented Reality headgear can be a must-have equipment in the $366 billion/year training industry.

We cannot dismiss the possibility that Microsoft (MSFT) might eventually buy tons of Nvidia Jetson Nano Modules to power its HoloLens 2 Mixed Reality product.

Source: Microsoft

There is also the realistic probability of Facebook (FB) and Nintendo (NTDOY) using Jetson Nano AI modules for their future games-centric consoles, VR headsets, and smart home appliances.

Conclusion

Nvidia’s latest annual revenue is $11.72 billion. Getting a new $1 billion/year product line can boost NVDA back to above $200 by mid-2020. We only know Nvidia as the king of gaming video cards and GPU deep learning accelerators. We should now also value Nvidia as the first company to sell consumer-centric or mainstream edge AI computers.

Nvidia is already a buy because Advanced Micro Devices (AMD) could not compete in datacenter GPU AI accelerators. The launch of very affordable edge AI computers further fortified the already large moat of Nvidia in Artificial Intelligence. This is why the $129 (and $99) Jetson Nano edge AI computer is an important tailwind for Nvidia. Nvidia is now working toward completing its end-to-end AI ecosystem.

My buy rating for NVDA is backed by its very bullish algorithmic 1-year forecast score (+345.89) from I Know First. Further, I Know First has a high 0.78 predictability score for NVDA’s 1 year market trend pattern.

Analysis of weekly technical indicators and moving averages also recommend NVDA as buy.

Past I Know First Forecast Success With NVDA

On December 27, 2018 The I Know First predictive algorithm gave a bullish prediction for Nvidia with the signal being for the 3-month time horizon at 5.92 and with predictability indicator of 0.65. In 3 months, the stock rose impressively by 34.56%.

This bullish Nvidia stock forecast was sent to the current I Know First subscribers on December 27, 2018.

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Please note-for trading decisions use the most recent forecast.