Nvidia's Target Raised to $1,200, AI Drives Demand

Key Takeaway

• Nvidia's stock is seen as a strong buy, with a target of $1,150, amid high expectations for its role in AI and upcoming earnings.
• Cantor Fitzgerald raised Nvidia's price target to $1,200 from $900, reflecting a 37% upside due to growth opportunities.
• Wall Street consensus rates Nvidia as a strong buy or overweight, anticipating solid demand through 2024 driven by AI advancements.

Nvidia's Market Position Strengthens

Nvidia, a leading name in the semiconductor industry, has been at the forefront of the artificial intelligence (AI) revolution, earning it the flagship status among tech companies. Despite a month-long breather that saw some investors questioning the uptrend, Nvidia's stock has demonstrated resilience and potential for further growth. Analysts and investors alike are closely watching Nvidia, especially with its fourth-quarter earnings report being labeled as a crucial moment for technology stocks this quarter. The expectations are high, reflecting Nvidia's historic growth and its role in driving the AI revolution.

Todd Gordon, founder of Inside Edge Capital, remains optimistic about Nvidia, highlighting its strong trends within transformative industries. Despite a temporary reduction in his holdings following a minor dip in stock price, Gordon sees potential for adding back to core positions, underlining Nvidia's robust market performance and strategic positioning.

Analysts Forecast Significant Upside

Ahead of Nvidia's highly anticipated GTC Conference, Wall Street analysts have ramped up their bets on the company, with several major firms increasing their price targets. Cantor Fitzgerald analyst C.J. Muse boosted his price target on Nvidia to $1,200 from $900, citing the company's growth opportunities and its under-the-radar businesses. This new target suggests a 37% upside from current levels, reflecting confidence in Nvidia's revenue and earnings potential moving forward.

Similarly, analysts from Truist and HSBC have raised their price targets, pointing to Nvidia's expanding AI datacenter leadership and the upcoming unveiling of its next-generation B100 graphics processing unit. These adjustments reflect a growing enthusiasm for AI technologies and Nvidia's pivotal role in this space.

Wall Street's Bullish Sentiment

The bullish sentiment on Nvidia extends across Wall Street, with a consensus strong buy or overweight rating. The anticipation for Nvidia's GTC Conference, often referred to as "AI Woodstock," is high, with expectations that the event will solidify Nvidia's position in the AI market. Analysts believe that Nvidia could be sold out through 2024, setting the stage for continued growth in 2025. This optimism is based on Nvidia's product pipeline, valuation, and the expanding opportunities in generative AI.

Street Views

• Todd Gordon, Inside Edge Capital (Bullish on Nvidia):

  "A flagship stock like Nvidia (NVDA) takes a month-long breather and many investors want to throw in the towel on the uptrend and say enough is enough. Don’t be afraid of strong powerful trends in leading stocks within transformative industries that are making ridiculous amounts of profits with a multiple year head start on competitors... The last time we spoke about NVDA was on Feb 21st just before the earnings report, while I was on a ski vacation... It traded down to a low of $662 and held, but I reduced my holdings to 6% anyway... Since NVDA emerged from the 2023 range breaking $500 resistance, it’s been straight up... In this month-long correction I mentioned above it took us from ‘overbought’ to ‘oversold’ within the uptrend channel and notice it did so on decreasing volume."