The market memory is still new when it comes to the volatility caused by Nafidia Company Nasdak: nvda Flash, which came from the Dibsic disaster in China. However, the relationship between NVIDIA and China exceeds this last accident. What investors might know or do not know is that this connection belongs to eight years.
Firaid today
As of 03:22 pm
- 52 weeks
- 12.22 dollars
▼
42.24 dollars
This is true, since 2017, according to a preliminary general offer (IPO)NVIDIA was a partner with another Chinese company, Weide Inc. Nasdak: wrdIt focuses on the auto sector with special interest in independent driving and logistical services. Whether this relationship has any relationship to competing design today between the United States and China for discussion. However, there are other angles that can be taken from this relationship.
For example, China leads the way to the global demand for electric cars, which, according to the latest research Albimarel Company Nyse: albIt now represents up to 60 %. With this in mind, the partnership between NVIDIA and Weride can be considered as a possible strategy for the rear paper to provide China with the chips it needs to make independent driving.
Not a modern cooperation
While Weride shares rose more than 63 % in one day after the news, NVIDIA’s investment in the company was not newly. The arrow rises a lot because, with Weride just appearing in the fourth quarter of 2024, the information behind Nvidia’s Holdings is now prevalent.
This may be considered a distortion of a recent purchase. However, it deserves some ascending in Weide, however, one of the largest American companies in the technology sector must have a very strong reason for partnership with Weide in the first place.
According to the Weride public subscription bulletin, this investment includes the provision of GPUs (GPU) needed for Weride to develop its independent fleet for leadership and logistics according to demand recordings and expectations. On the other hand, NVIDIA will participate in success by being an interest in stock.
Now, most of these shares that NVIDIA keep in Weride in the so -called “closing period”, which means that NVIDIA cannot get rid of them until the period ends, taking into account that it was shares before the public subscription. With this in mind, there are some things that must be thought about to go forward in NVIDIA shareholders and for those who feel missing in Weride.
Weide Inc. (WRD) for Friday, February 14, 2025
The market takes news
What investors need to focus on now is the effect that may have this sudden rise in Weride’s evaluation on NVIDIA, especially since the company is preparing to report the latest results of the quarterly profits. The first is the fact that more than $ 4 billion in the market value of the NVIDIA public budget has been created.
Second, the arrow’s capabilities to maintain its height will only add more value to NVIDIA. According to accounting standards, this can be considered “another income” if NVIDIA chooses to report this increase in the evaluation of stock property in this way, which means that the arrow’s profits (EPS) can come out better than expected.
This, of course, is the reason that the arrow rose more than 1.7 % on the same day that Weride rose and why the market is still ready to pay huge installments for NVIDIA. NVIDIA trade is not only 90 % of its highest level in 52 weeks today, but the market is ready to pay 32.7X rating forward (P/E).
Compared to their peers like ASML contract Nasdak: Asml,, Which is trading at only 23.8X to the front P/E, this distinguished investors shows the market’s willingness to pay exaggerated for future NVIDIA profits. When the market shows this high level of condemnation, it is best to provide investors by not fighting against it.
Moreover, some Wall Street analysts, such as those in Tigress Financial, have repeated their upscale expectations for Excellence before announcing their profits. These analysts not only maintained a strong purchase on NVIDIA shares, but also put a $ 220 rating for the share on the company, which calls for an increase of 60.3 % of today’s price.
In the end, what matters if the market will be appropriate to pay such a high bonus for future NVIDIA profits. Looking at the Wall Street profit expectations per share (EPS) for the second quarter of 2025, which lands at $ 3.28, it seems that the increase of four times in the arrow of the arrow is already justifies today’s installments, which are expanded only through this reinforcement in the Weride assessments.
Before you think about Weide, you will want to hear this.
Marketbeat follows the best research analyst at Wall Street, the best performance in Wall Street and the stocks they recommend to their customers on a daily basis. Marketbeat has identified the five shares whom the top analysts whispered quietly to its customers to buy now before wiping the broader market … Weride was not in the list.
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