NVIDIA Corporation NVDA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. NVIDIA is benefiting from the coronavirus-induced work and learn-from-home wave. It is also benefiting from strong growth in GeForce desktop and notebook Graphic Processing Units, which is boosting gaming revenues. Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. Expansion of NVIDIA GeForce NOW is expected to drive user base. Further, solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon. Additionally, collaboration with Mercedes-Benz is expected to further strengthen NVIDIA’s presence in the autonomous vehicles and other automotive electronics space. The stock has outperformed industry over the past year.NVIDIA is a cash rich company with a strong balance sheet. NVIDIA boasts a sturdy cash-flow generating ability.
Splunk Inc. SPLK provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. Splunk reported fourth-quarter fiscal 2022 non-GAAP earnings which beat the Zacks Consensus Estimate by a triple digit percentage. The company gains from strong execution across its platform, observability and security businesses as organizations partner with it to secure their infrastructure. Splunk’s software can be deployed in various computing environments, from a single laptop to large distributed data centers. The integration with Amazon Web Services security hub to help customers accelerate response to potential threats is a catalyst. The company’s business transition from perpetual licenses to subscription or renewable model is expected to benefit it in the long run. For SPLK, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company’s ability to report better earnings than they predicted earlier strengthens their company view.
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