We recently published a list of The 10 best big data stocks to buym. In this article, we take a look at where NVIDIA Corporation (NASDAQ: NVDA) is doing compared to other big data stocks.
The global big data market is on a rapid growth trajectory and is expected to reach $103 billion by 2027, more than doubling in size since 2018. This explosive growth is driven by the increasing reliance on data to support business decisions, optimize operations, and generate new revenue streams. According to Statista, the software segment in particular will dominate, accounting for 45% of the market by 2027. Big data, characterized by its massive volume, high velocity, and wide variety, presents both opportunities and challenges. Traditional data processing tools struggle to handle the scale and complexity of modern data sets that are growing rapidly due to the rise in mobile traffic, cloud computing, and the integration of technologies such as artificial intelligence (AI) and the Internet of Things (IoT). These factors have helped big data become a critical asset for businesses across industries. As the data landscape has evolved, advanced analytics tools such as predictive analytics and data mining have become essential to extract valuable insights from massive data sets.
The rise of the Internet of Things (IoT) has led to a rise in the number of connected devices generating massive amounts of data that require advanced big data solutions for effective processing and analysis. Cloud computing is enriching the big data market by providing scalable and cost-effective storage and processing capabilities, enabling businesses to easily handle large amounts of data. Technological advancements in big data are continuously improving the management and analysis of massive data sets, making these processes more accessible and practical. This advancement supports the growing trend of data-driven decision-making, where businesses are increasingly relying on data insights to make informed decisions, optimize operations, and gain a competitive advantage. In addition, big data analytics helps businesses uncover hidden patterns and customer trends, drive innovation, and enable the development of products and services that adapt to evolving market needs, highlighting the critical role of big data in today’s competitive environment.
Investments in big data technologies are also being driven by strict data privacy and security regulations. Compliance with laws such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the US is becoming mandatory for businesses. These regulations require robust data handling practices and compel companies to implement advanced big data solutions that ensure data privacy and security. Improved measures such as secure storage and data protection protocols build trust among consumers and stakeholders. In addition, the need for effective data management frameworks is accelerating the adoption of sophisticated big data technologies. These solutions enable comprehensive data management, including tracking data lineage, maintaining data integrity, and conducting regular audits. The focus is on integrating encryption, anonymization, and real-time monitoring tools to prevent data breaches and unauthorized access. Continuous investment in big data technologies is critical for organizations to meet evolving compliance requirements and thus drive market growth.
According to a report by Verified Market Research, North America is expected to continue to lead the big data market, driven by key verticals such as finance, healthcare, and e-commerce. In the financial sector, big data analytics plays a crucial role for banks, investment firms, and insurance companies as it provides deeper insights into customer behavior, detects fraudulent activities, and assesses risks. By analyzing extensive data sets, including transaction histories, market trends, and customer demographics, financial institutions can uncover patterns and anomalies that help in making informed decisions and managing risks. Predictive analytics models improve forecasting of market trends, optimize investment strategies, and improve portfolio management, contributing to increased profitability and competitive advantage in the financial sector.
In healthcare, big data analytics significantly improves patient care, reduces costs, and advances medical research. Healthcare providers use big data to analyze electronic health records (EHRs), medical imaging, and genomic data to adjust treatment plans, diagnose diseases more accurately, and predict patient outcomes. Population health analytics also helps healthcare organizations identify high-risk groups, allocate resources more effectively, and implement preventive measures. In addition, integrating big data into healthcare systems supports real-time monitoring of patient health metrics, enabling timely interventions and better overall outcomes. Pharmaceutical companies benefit from big data by accelerating drug discovery, refining clinical trials, and developing personalized medicines, driving innovation and advancement in medical science.
With such a bright outlook for the big data market, investors are closely monitoring companies that are well positioned to capitalize on this trend. In this article, we examine the best big data stocks to buy now, focusing on companies that are well positioned to capitalize on the immense growth opportunities in this dynamic sector.
At Insider Monkey, we are obsessed with the stocks that hedge funds invest in. The reason is simple: Our research has shown that we can outperform the market by mimicking the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (Further details can be found here).
A close-up of a colorful high-end graphics card connected to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Average analyst price target: 5.40%
Average analyst price target: USD 131.31
Number ten on our list of top ten big data stocks to buy now is NVIDIA Corporation (NASDAQ:NVDA). The company makes chips used to support big data use cases. The average analyst price target for NVIDIA Corporation (NASDAQ:NVDA) is $131.31, suggesting a potential upside of 5.40% as of August 16. Analysts consider NVIDIA Corporation (NASDAQ:NVDA) a strong buy ahead of its earnings report on August 28. Despite a 35% decline, the stock recovered and could rise again. NVIDIA Corporation (NASDAQ:NVDA), a leader in the AI market, is likely to benefit from the rapid growth of the sector, which is expected to grow from $184 billion in 2024 to $826 billion in 2030. Analysts believe the company’s current gross margin of 78% could decline due to competition, but this is not an immediate cause for concern. With a P/E ratio of around 40 for fiscal 2025, NVIDIA Corporation’s (NASDAQ: NVDA) continued earnings growth could drive its stock price higher, making the company a solid long-term buy despite potential risks.
Patient Capital Opportunity Equity Strategy stated the following about NVIDIA Corporation (NASDAQ: NVDA) in its second quarter 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead both the market and portfolio, remaining a top performer for the period, gaining 36.7%. Nvidia is the market leader in the development and sale of graphics processing units (GPUs), which have recently benefited from insatiable demand for artificial intelligence (AI) models. The company currently holds 92% market share in data center GPUs and grew revenue, profit, and free cash flow (“FCF”) by an astonishing 126%, 392%, and 610%, respectively, last year. While we expect increased competition, we believe NVDA can continue to maintain its top market share. While many are concerned about shorter lead times, we believe the launch of the B100, which promises 2.5x better performance at only 25% higher cost, later this year will create further shortages. With cutting-edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increasing adoption of artificial intelligence (AI).”
NVDA total takes 10th place on our list of the best big data stocks to buy. While we recognize NVDA’s potential as an investment, we believe some AI stocks promise higher returns and do so in a shorter time frame. If you’re looking for an AI stock that’s more promising than NVDA but trades at less than 5x earnings, read our report on the cheapest AI stock.
READ MORE: $30 trillion opportunity: The 15 best humanoid robot stocks to buy, according to Morgan Stanley, and Jim Cramer says NVIDIA has ‘become a wasteland’
Disclosure: None. This article was originally published on Insider Monkey.
