(News Bulletin 247) – Nvidia shares ended up 6.4% Monday evening, closing at a new all-time high, as the company announced new graphics processors for PCs at CES in Las Vegas.

If the start of the stock market year is hardly triumphant, with the S&P 500 falling 0.1% since January 1, Nvidia is still doing well.

The graphics processor specialist closed with a new record Monday evening, with an increase of 6.4% to $522.33, not far from its session high of $522.75. With a market capitalization of nearly $1.3 trillion, Nvidia is a little closer to the top five largest companies listed on the stock exchange (Amazon is fifth with $1.54 trillion).

According to Reuters, trading volumes in Nvidia stock reached $32 billion on Monday, the highest amount for any stock on Wall Street.

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Pressure on AMD

Remember that Nvidia was the big winner on the stock market in generative artificial intelligence, its products being used to provide computing power to train and develop the conversational robots ChatGPT (OpenAI) and Bard (Google).

On Monday, the group founded and led by Jensen Huang unveiled new products at the Consumer Electronic Show in Las Vegas, a show dedicated to consumer technological innovations, more precisely graphics cards for PCs priced at less than $1,000 and taking advantage of the artificial intelligence.

In detail, the RTX 4080 Super will be offered at $999, the RTX 4070 Ti Super at $799, and the RTX 4070 Super at $599. These three models will be available from January 31.

“Prices which, for once, are not increasing, or even falling, despite products moving upmarket. Nvidia is thus putting pressure on its competitor AMD with more attractive prices,” explain our colleagues at BFM Tech.

Bloomberg, for its part, emphasizes that these three new graphics chips will be equipped with “additional components that will allow gamers, designers and other computer users to better use AI on their personal machines without having to resort to services remotely accessible via the Internet.

100 billion dollars in cash over two years

Nvidia assures that these new chips will offer gamers a more realistic gaming experience with better definition and improved dialogues with video game characters.

In parallel with these announcements, the Reuters agency also reported on Monday that the group would begin producing an artificial intelligence chip in the second quarter which could be exported to China, respecting the restrictions imposed by the American authorities since the fall. last.

Regarding the group’s stock market potential, Bank of America confirmed its buy advice on the stock and its price target at $700. This gives the value a margin of growth of more than 50%. According to the American bank, Nvidia could generate 100 billion dollars in free cash flow over the two financial years 2024 and 2025, of which 30 to 35 billion could be used for share repurchases and 65 billion to 70 billion to take organic measures (investments to improve or develop products) and inorganic (business buyouts).

Bank of America particularly expects Nvidia to target acquisitions that would allow it to increase the share of its recurring revenues (subscriptions, software). Currently, revenues from subscriptions and software, as opposed to hardware, represent only 2% of its revenues.

External growth operations likely to increase this percentage could further improve Nvidia’s stock market multiples which are surprisingly not that high.

According to Bank of America, Nvidia is trading, based on expected earnings and cash flow, at a 20% to 30% discount to the six other groups also belonging to Wall Street’s “magnificent seven” club. , i.e. Apple, Alphabet, Meta, Amazon, Microsoft and Tesla.