Does NVIDIA rate pay off? News ad

The market memory is still fresh when it comes to the volatility caused Nvidia Co. NASDAQ: NVDA Flash dealer that came from the defeat of Deepseek in China. Nevertheless, the relationship between Nvidia and China goes far beyond this recent incident. That investors can or cannot know that this connection is returning within eight years.

Correctly, since 2017, according to the original prospectus of a public proposal (IPO), NVIDIA was a partner of another Chinese company, Weride Inc. NASDAQ: WRDWhich is focused on the automobile sector with a special interest in autonomous driving and logistics. Whether these relations have any attitude to today’s rivalry for the production of chips between the United States and China, preparing for the debate. Nevertheless, there are other corners that can be taken from this relationship.

For example, China leads in global demand for electric cars, which, according to recent studies conducted Albemarle Co. NYSE: AlbNow it is up to 60%. With this in mind, the partnership between Nvidia and Weride can be perceived as a potential Backdoor strategy to supply China with chips necessary for driving autonomous driving reality.

Not recent cooperation

While Weride shares increased more than 63% one day after the news, NVIDIA investments were not recently in the company. There are so many promotions, because since Weride has just become public in the fourth quarter of 2024, the information standing behind the possessions of NVIDIA is now becoming the main one.

This could be perceived as a distortion of a recent purchase. Nevertheless, he deserves some bull at Weride, nevertheless, since one of the largest companies in America in the technological sector should have very good grounds for partnership with Weride first of all.

According to IPO Avenue in Weride, these investments include NVIDIA, which provides graphic processing (GPU) necessary for the development of its autonomous driving and the logistics fleet in accordance with its demand and forecast requirements. In turn, NVIDIA will participate in success, being an interested side of the shares.

Now most of these shares belonging to NVIDIA in Weride are still in the so -called “blocking period”, which means that NVIDIA cannot get rid of them until the end of the period, given that they were shares to the IPO. With this in mind, there are several things that you should think about moving forward for NVIDIA shareholders, and for those who feel that they pass in Weride.

The market receives news

Now investors should focus on the fact that this sudden surge of the rating for Weride can be provided by NVIDIA, especially since the company is preparing to report its latest quarterly profit results. Firstly, the fact that more than $ 4 billion of market capitalization was created for the NVIDIA balance.

Secondly, the potential of the shares will continue to move higher, only add the greater value of NVIDIA. According to accounting standards, this can be perceived as “other income” if NVIDIA decides to inform about this increase in the shares of shareholders, which means that income per share (EPS) can come better than expected.

This, of course, why the shares increased more than 1.7% on the same day, and why the market is still ready to pay such mass bonuses for NVIDIA. NVIDIA is not only traded by 90% of its 52-week maximum today, but the market is also ready to pay a 32.7-fold assessment of the price of profit (P/E) for it.

Compared to peers, as Asml Holding NASDAQ: AsmlWhich is traded in only 23.8 when the market shows this high level of condemnation, investors will be best to serve without fighting against it.

Moreover, some Wall analysts, for example, from Tigress Financial, confirmed their bull’s look at NVIDIA in anticipation of income announcements. These analysts not only retained a high purchase rating on NVIDIA shares, but also placed in the company an estimate of $ 220 per action, which requires up to 60.3% of growth compared to today’s price.

Ultimately, it is important whether the market will be correct to pay such a high bonus for future NVIDIA income. Given the forecasts of income on Wall Street (EPS) for the second quarter of 2025, which are landed by $ 3.28, four times in a four -fold increase in the shares of the shares, it seems that today’s premiums are justified, which expand only due to this increase in Weride ratings.

Before considering the issue of how you want to hear it.

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