Nvidia Stock Forecast 2022 and 2025: Is NVID a Strong Buy?

NVDA is the stock symbol for the Nvidia Corporation, an American company with headquarters in Delaware. Nvidia Corporation makes semiconductor chips and graphic cards for computers. The company has expanded its footprint in the gaming and professional markets through its graphics processing units (GPUs), which have also found applications in cryptocurrency mining. The GPUs are also used in the entertainment industry, in media, manufacturing design, engineering, and construction.

Nvidia Stock News

The latest Nvidia stock news continues to dwell around the company’s decision to cancel its planned acquisition of SoftBank’s Arm Ltd. The deal fell through after regulators last week. However, Nvidia maintains a healthy balance sheet and is not expected to come out of the failed deal with any significant bruises, despite having to forgo its prepayment of $1.25billion.

Nvidia will report its 4th quarter earnings on 16 February 2022. The earnings figures will become the predominant Nvidia stock news which will carry investor sentiment into the middle of the year.

Will Nvidia Stock Go Up?

The question should not be, “will Nvidia go up”? Instead, the question should be about the extent to which Nvidia should be going up. This is a stock that has a lot of tailwinds following it. Despite terminating the Arm acquisition and giving up $1.25 billion as compensation to Arm’s owner SoftBank, Nvidia still retains the 20-year Arm license. As the company moves ahead with its launch of Grace, its computer processing unit, Citi bank believes that it can go on with this project with empowerment from its 20-year Arm license without necessarily owning Arm.

Nvidia Price Targets from 26 Institutional Analysts. Source: Tipranks

A review of TipRanks’ compilation of the ratings of 26 analysts shows a consensus that the stock has the potential to hit $353.26 – $400.00 in the next year. Twenty-three analysts have Nvidia as a Strong Buy because of the bullish Nvidia stock forecasts.

Nvidia Stock Forecast 2022

There were feelings in some quarters that the failed acquisition of Arm in a deal that would have been worth $40billion could have derailed attempts at registering new highs for the stock in 2022.

The Nvidia stock forecast for 2022 appears to be on track, with the expectation of an uptrend move that will eventually surpass the 346.47 high seen on 22 November 2021. Today, the Nvidia stock price is primed for a higher open; it is up 1.54% in premarket trading. If the price closes higher following the day’s trading session, this would mark a 4th consecutive day of gains and bring the Nvidia stock price closer to its previous highs.

Supporting a bullish Nvidia stock forecast 2022 outlook is Citi analyst Arif Malik. He reiterated the bank’s buy rating on the stock with a $350 price target. At the current market price, this target implies that there is still a 42% upside move left in the stock. It is noteworthy that Citi provided this buy rating after the Arm acquisition fell through. 

To nail this target, the Nvidia stock price must surpass the previous all-time high of 22 November 2022. This move would require the bulls to remove the resistance barriers at 270.21 and 287.05 (10 January 2022 high). If the price can surpass the all-time high, 430.71 and 491.16 are viable upside targets. These targets may be ambitious for 2022 but are within the bullish Nvidia stock forecast 2025 targets.

A change in outlook follows a drop below the 208.62 pivot. This move would open the door towards 193.83 and 178.70 (19 July 2021 low)

Nvidia Stock Forecast 2025

The Nvidia stock forecast 2025 outlook carries on from the 2022 outlook. The Nvidia stock forecast for 2025 remains bullish. However, there is a chance that the price may retreat to the low of the recent 12-month estimates provided by 26 analysts before the price approaches the top end of their price forecast.

The lower end of the price target forecast is $250, while the top end is $400. $353.26 is the median of the price band’s forecast. If the price exceeds the $400 top end of the 2022 forecast, then 522.72 and 568.06 (141.4% and 161.8% Fibonacci extension levels) could come into the picture at that time.

However, there is always the chance of a price retreat below $250, which negates the long-term bullish outlook.

Is Nvidia a Good Stock to Buy?

Nvidia is a good stock to buy. It has good cash flow, solid fundamentals, and has the support of 23 out of 26 institutional firms as a “Strong Buy”. Whether or not it is an excellent stock to buy at the current price is another matter entirely.

Nvidia Price Targets. Source Nasdaq.com

Summary

Nvidia stock forecasts are bullish. The company has been able to ride a wave of success from the pandemic and the global shortage of semiconductor chips. In addition, the recent fall in price due to the cancellation of the Arm acquisition has been overcome, and the stock is back to winning ways once more.

Nvidia: Weekly Chart