Nvidia (NVDA) Stock Forecast 2024: Is NVDA a buy for 2024?
The picture looks gloomy for Nvidia and other such high-growth tech stocks. For Nvidia, the requirement of a license for sale in China and Russia acted as the last nail in the coffin. The theory of Nvidia being overvalued got the support of dismal quarter results and guidance. All these negative factors led to a decline of about 60% in Nvidia shares in 2022.
NVIDIA Stock Forecast 2024 is $802. NVIDIA Stock Price Target for the next 12 months is $854 (Analysts).
Latest NVDA Stock Price
NVDA Stock Performance in the Last 12 Months
| Last 5 Days | +6.2% |
| Last 1 Month | +31.2% |
| Last 6 Months | +66.7% |
| Last 12 Months | +231.9% |
NVDA surged close to $800 in after-hours trading. With the blistering AI Buzz, some analysts are predicting that NVIDIA will reach $1000. What are the Signals and Predictions?
UTC: Feb 22nd, 2024 04:31 PM
| Overall Outlook | Neutral |
| 1. Market’s Wisdom | Neutral |
| 1a. Market Data | Partially Bullish |
| 1b. Technical Recommendation | Sell |
| 2. Crowd’s Wisdom | Partially Bullish |
| 2a. Social Media Buzz | Higher |
| 2b. Social Media Sentiment | Steady |
The immediate target for NVDA is $875 by April 2024 and a target of $1250 by 2026. We are likely reaching the peak of the NVDA pump, Expect some consolidation in Feb-March before any moves higher.
- NVIDIA Stock Price Prediction in the next 24 hours is between $706 and $813
- NVIDIA Stock Price Prediction this week is between $652 and $783
NVIDIA Stock- Buy or Sell Poll
- Feb 17th: +85.4%
- Feb 20th: +84.8%
- Feb 21st: +85.0%
- Feb 23rd: +82.0%
NVIDIA Stock Price Targets: Analysts
| NVIDIA Stock Price Target for the Next 12 Months | $854 |
| Keybanc | $1100 |
| Argus | $850 |
| Craig-Hallum | $850 |
| DA Davidson | $620 |
| Needham | $850 |
NVIDIA Stock Price Prediction for the Next 5 Years (Aggregated)
- NVIDIA Stock Price Prediction 2024 is $802
- NVIDIA Stock Price Prediction 2025 is $878
- NVIDIA Stock Price Prediction 2026 is $961
- NVIDIA Stock Price Prediction 2027 is $1025
NVIDIA Q4 Earnings Update
- Fourth quarter revenue: $22.1 billion, up 22% from Q3 and 265% from the previous year.
- Fourth quarter Data Center revenue: $18.4 billion, up 27% from Q3 and 409% from the previous year.
- Fiscal 2024 total revenue: $60.9 billion, up 126%.
- Fourth quarter GAAP earnings per diluted share: $4.93, up 33% from Q3 and 765% from the previous year.
- Fourth quarter Non-GAAP earnings per diluted share: $5.16, up 28% from Q3 and 486% from the previous year.
- Fiscal 2024 GAAP earnings per diluted share: $11.93, up 586% from the previous year.
- Fiscal 2024 Non-GAAP earnings per diluted share: $12.96, up 288% from the previous year.
- Q1 fiscal 2025 revenue outlook: Expected to be $24.0 billion.
When Will NVIDIA Stock Reach $1000?
With the massive AI-driven boom, NVDA is likely to reach $1000 much earlier than our original forecast. NVDA is likely to report revenue that is 3 times higher than 2022.
Read: TTD Stock Split
Conclusion: Will NVIDIA Stock Reach $1000?
For Nvidia, the requirement of a license for sale in China and Russia acted as the last nail in the coffin. However, The opportunities in the form of data centers and Metaverse are knocking at doorsteps, and Nvidia is all prepared to welcome them. Therefore, despite the restriction in sales, NVIDIA’s stock price could reach $1000 in the coming years.
Nvidia (NVDA) Stock Forecast 2024: Bull Case
Strong Business Outlook
NVIDIA is a leader in several key markets, including graphics processing units (GPUs), artificial intelligence (AI), and gaming. This dominant market position provides the company with a competitive advantage and helps it generate consistent revenue and profits.
Growth in AI and data centers
NVIDIA’s GPU technology is well-suited for AI and data center applications, which are both growing markets. The launch of AI Chatbot, ChatGPT has been welcomed by the NVIDIA CEO who expects ChatGPT to help the NVIDIA stock to grow.
Strong financial performance
NVIDIA has been consistently reporting strong financial results in recent years, with revenue growth and earnings beating analysts’ expectations. This trend is likely to continue due to the company’s expanding product portfolio and market opportunities.
Strong partnerships
NVIDIA has formed strategic partnerships with several major technology companies, including Microsoft, Google, and Amazon. These partnerships provide NVIDIA with access to new markets and customers and can help drive growth in the long term.
Partnerships of NVIDIA
The chipmaker NVIDIA produces one of the fastest processors. This factor has helped NVIDIA have a critical partnership with major cloud computing companies like Amazon Web Services, Alphabet’s Google Cloud, and Microsoft’s Azure Cloud. With the growing cloud computing industry, NVIDIA is likely to benefit from it and this will help the company grow its revenue and in turn help NVDA stock rise.
NVIDIA Stock Split: Is there a Split on the Cards?
Growth Opportunity in Data Centre
Although Nvidia is known for graphics cards and video games, growth is likely to come from data center solutions. Businesses worldwide were already moving data into the cloud before the Covid-19 pandemic, but the pace increased multifold post-pandemic.
And that is where the growth opportunity lies for Nvidia and its high-margin data center solutions. As more and more businesses opt for cloud storage, this industry is not going to get smaller. Plus, while GPU is the main forte for Nvidia, it also specializes in handling complex workloads like AI. Nvidia is already disrupting Intel’s data center turf by producing data processing units (DPU) that can handle such complex workloads.
In the second quarter, Nvidia experienced data center growth of 61% compared to last year, which will not slow down in the coming months. Hence, the data center will be the pivot point for the growth of Nvidia and its share price in 2023.
Personal Visualization is the next big thing
Nvidia has another fast-growing segment named personal Visualization. It, too, offers double-digit sustainable growth potential in 2023. Personal Visualization will only enable Nvidia to become a key player in Metaverse, and Metaverse represents a multitrillion-dollar opportunity over the long run.
Omniverse is Nvidia’s answer to Metaverse. According to reports, Nvidia will take a $1000 license fee per user to use Omniverse, and there are expected to be around 40 million designers worldwide using Omniverse soon. The Omniverse platform is already available to 3 million developers, which could increase multifold in 2023.
With Omniverse, any software-based bot, like a virtual assistant in a car, can get its virtual avatar. Analysts believe there will be millions of these virtual assistants one day; hence, Omniverse can prove to be a cash cow for Nvidia in 2023 and the coming years.
Datacenter and Omniverse are smaller revenue segments than GPU sales, but these areas have the potential to become the next big thing, and Nvidia is poised to gain from these sectors.
NVIDIA Stock Forecast 2024: Bear Case
Restriction to sales of data center chips to China and Russia
In a bear market, negative news keeps coming one after the other, holding the market in the tight grip of bears. For Nvidia investors, 2022 was already challenging due to high inflation numbers.
In September, one more bombshell imploded for Nvidia. The US government ordered to an immediate halt of sales of specific chips and data center systems to China capable of handling advanced artificial intelligence (AI) workloads. National and International Security are given prime reasons for this move.
In an SEC filing, Nvidia informed that the US government imposed a new license requirement, which is effective immediately for exporting the company’s A100 and upcoming H100 integrated circuits to China, Hong Kong, and Russia. Also, a license requirement applies to systems Nvidia sells to incorporate these chips, like DGX systems. Moreover, the rules are applicable for any future chips with the same or more excellent capability compared to A100.
The effect of these restrictions on Nvidia’s revenue was evident when the company declared third-quarter guidance during the second-quarter results in 2022. Management said it would lose approximately $400 million in potential sales to China due to this license requirement.
It will be interesting to note the losses due to this turnaround during the third-quarter earnings report. Still, US-China relations are not expected to improve anytime soon, a significant headwind for Nvidia heading into 2023.
It is all about being “expensive”
Nvidia is one of the prominent growth stocks trading at high valuation metrics, and that somewhat explains the sell-off in Nvidia in 2022. Investors are wary of high-growth stocks when Fed continuously increases interest rates, and anticipated recession is glooming over the world.
Growing Competition
With the booming chip industry, the competition has also grown. NVIDIA faces huge competition from companies like Cisco. Juniper. Arista Networks. Dell Technologies. Extreme Networks. Huawei. VMware. Therefore, for NVIDIA to survive it will have to be the best.
But is it all over for Nvidia? Certainly not. The opportunities in the form of data centers and Metaverse are knocking at doorsteps, and Nvidia is all prepared to welcome them. Even not so good second quarter had 61% growth in the business of data centers. Metaverse is still at the infant stage but has excellent upside potential.
How much of these growth factors will play out in 2023 will be a big question. But it is equally essential that negative factors like interest rate hikes by the Fed and bumpy license procedures for supply to China should subside.
It is a buy though one would strongly recommend doing your own research as well.
Note: collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.