Nvidia (NASDAQ: NVDA) has had a strong run so far in 2024, but recent trading sessions have seen a slight pullback in NVDA stock price.
Nvidia has demonstrated its strength in the market with an outstanding year-to-date increase of over 87%, making it one of the top performers in the S&P 500. This significant rise, crossing the $900 mark, has piqued investor interest in its potential to reach $1,000.
Analysts are bullish on NVDA, predicting further increases that could push its shares well beyond the $1,000 mark.
With stock market analysts remaining optimistic about the GPU makers’ prospects in the coming months.
Most analysts see NVDA above $1,000 post-earnings
Following the lesson from Q1 Nvidia earnings, which beat already optimistic expectations, analysts are setting their sights on the $1,000 goal ahead of Q2 earnings on May 22.
UBSraised its price target for Nvidia to $1,150 from $1,100, maintaining a ‘buy’ rating ahead of the company’s upcoming earnings release on May 22. The bank attributed the target increase to strong demand and revised revenue estimates.
Despite potential shipment timing concerns, analysts at UBS noted robust demand for Nvidia’s Blackwell and Hopper products. While Blackwell shipments are expected in December, UBS remains optimistic about sustained demand for Hopper, particularly emphasizing its strength ahead of a significant product transition.
Citi also reaffirmed its buy rating on NVDA stock, with a price target of $1,030. This came after a share price decline following the recent GPU Technology Conference, attributed to profit-taking by investors.
Citi’s analysis suggests Nvidia’s demand visibility extends into the first half of 2025, with GPU unit sales projections aligning with their expectations. They anticipate positive triggers for the stock from forthcoming remarks by key suppliers in Nvidia’s supply chain.
In addition, Goldman Sachsincreased its price target for NVDA stock from $1,000 per share to $1,100, reflecting a potential upside of 21.2% compared to its prior closing price.
This surge has led one of the most bearish analysts covering Nvidia, HSBC Head of Technology Research Frank Lee, to switch his stance from ‘reduce’ to ‘buy,’ with a price target increase to $355 from $175.
Some go as high as $1,400 for NVDA stock
Although the rating dates back to February 2024, it may be a predictive indicator. Hans Mosesmann, senior research analyst at Rosenblatt Securities, has set a $1,400 price target for NVDA shares. He believes the stock could nearly double within the next 12 months to reach $1,400 per share.
This forecast is noteworthy, considering Nvidia’s current market capitalization of $2.26 trillion. However, it is worth noting that NVDA’s share price has already more than tripled over the past year.
Therefore, within a historical context, Mosesmann’s prediction of nearly doubling within the next year may ironically indicate a potential slowdown in growth.
Hence, based on current estimates, the chances of Nvidia's share price crossing $1,000 in the next decade appear slim. These projections, however, can change in case Nvidia makes even more dramatic advances in AI technologies in the coming years.
Recently, Rosenblatt Securities raised its NVDA price target from $140 to $200, a new Street-high, following the stock split. Likewise, Constellation Research founder Ray Wang believes that Nvidia stock can hit $200 in the next 12 months.
Nvidia stock has delivered a total return of more than 27,000% over the last decade. That means that if you invested $1,000 in the stock 10 years ago and held onto your position, your holdings would now be worth more than $271,000. NVDA Total Return Level data by YCharts.
Warren Buffett and tech stocks go together like...well, they usually don't go together. The legendary investor typically avoids stocks that are out of his wheelhouse. And tech isn't his strong suit. Unsurprisingly, Buffett doesn't own a single share of Nvidia (NVDA 0.11%).
Consensus estimates predict Nvidia's earnings will increase at an annual rate of just over 35% for the next five years. Based on the company's fiscal 2024 earnings of $12.96 per share, its bottom line could jump to $58.11 per share after five years, assuming it does increase at the predicted rate.
Nvidia stock still looks capable of outperforming the S&P 500 over the next 10 years -- especially as the AI industry expands out of simple chatbots into more advanced-use cases.
We believe Nvidia will reach a $10 trillion market cap by 2030 or sooner through a rapid product road map, it's impenetrable moat from the CUDA software platform, and due to being an AI systems company that provides components well beyond GPUs, including networking and software platforms.
Assuming Nvidia does hit $184.5 billion in revenue in fiscal 2027, its top line would have increased at a compound annual rate of 45%. If the semiconductor giant's growth tapers off in the two that follow years to, let's say 25% a year, its revenue could reach $288 billion after five years.
A $20,000 investment made in the semiconductor giant 10 years ago would be worth more than $3.4 million today -- up by around 170 times in value. It is also worth noting that the company has taken less than a decade to turn a $20,000 investment into precisely a $1 million.
Then came the generative AI explosion in 2023 and 2024. At the end of last year, your initial $10,000 position in Nvidia would have grown to over $12 million. If you continued to hold on to all of your shares, your investment would today be worth (drum roll, please)... over $30 million.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., Fmr Llc, State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Price T Rowe Associates Inc /md/, Jpmorgan Chase & Co, and Morgan Stanley .
Nvidia is one of the Magnificent Seven stocks that led the market in 2023 and much of this year. Some of these tech titans are customers that rely on Nvidia's advanced chips. Nvidia is also one of the stocks that many analysts believe will outperform the market in 2024.
The average Wall Street forecast for Nvidia's earnings in 2026 overall is $4.10 and the average price target on the stock is $126.24, according to FactSet.
Based on 43 Wall Street analysts offering 12 month price targets for Nvidia in the last 3 months. The average price target is $151.79 with a high forecast of $200.00 and a low forecast of $90.00.
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