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Nvidia Stock Forecast 2024 and 2025: Is NVDA 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.

NVDA had a breathtaking in March, going on to hit an all-time high of $974 on March 8. It then continued with the uptrend until March 25 when it snapped the uptrend. The stock struggled in April, when it hit lows of $756. The decline saw NVDA shed 10% of its value on April 19, the highest single-day loss since October 2022. However, the stock has made a turnaround since late April and has risen to $946.30 as of writing. The latest recovery comes amid a general uptrend in the tech market in the aftermath of a series of better-than-expected earnings reports.

Nvidia Stock News

Nvidia will release its earnings report on May 22nd, and the current market rally is largely attributed to investors positioning themselves for potential better-than-expected earnings. The company is expected to report revenues in the region of $24.57 billion for the quarter ending April 2024, up from the previous quarter’s $22.1 billion. In addition, the EPS is expected to come in at $5.57, up from $4.92.

One of the headline news for NVIDIA in the first week of May was Meta’s reported $30 billion purchase of the NVIDIA GPUs as part of its focus on AI. In particular, NVIDIA’s high-capacity GPUs are at the forefront of the race to develop artificial general intelligence (AGI), which is touted as being potentially capable of being more intelligent than humans.

In March, Nvidia announced Blackwell, a new line of AI-focused processor chips. The first out of this product line will be the GB200, which has a capacity of 20 petaflops. That is a massive upgrade from the previous 4 petaflops for the highly-successful H100 chips. Nvidia will start shipping the GB200 from the fourth quarter of 2024. The Blackwell family of processors is miles ahead of the competition. Furthermore, the H100 chips are still in high demand.

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. Nvidia’s success in the AI field is likely to keep it in the lead for longer, much as the stock price is currently down. That said, the demand for these chips will also depend on AI-native breakthrough technologies, products and services. Conversely, a stagnation in AI development could impact Nvidia’s earnings.

In the short-term, the NVDA stock price is likely to continue rising ahead of the release of its earnings report. This time round, however, it could rise to break the $1,000 psychological barrier, considering that it is only about 3 percent below that mark. However, in the coming months, it could ease as investors take profits. Furthermore, higher-for-longer US interest rates could create a harsh environment that could limit the upside.

Also, there’s an emerging concern that the global semiconductor market could be staring at imminent supply constraints. Already, Super Micro Computers (SMCI) and Advanced Micro Devices Inc (AMD) are reporting headwinds in that front. A spillover could potentially affect the broader market and, by extension, NVIDIA’s ability to meet order volumes amidst an AI market boom.

Nvidia Price Targets from 41 Institutional Analysts. Source: Tipranks

A review of TipRanks’ compilation of the ratings of 41 analysts shows a consensus that the stock has the potential to hit $1,004 – $1,400.00 in the next year. Thirty nine analysts have Nvidia as a Strong Buy because of the bullish Nvidia stock forecasts. On the downside, the forecasts give a low price of $620.

Nvidia Stock Forecast 2024

As described earlier, Nvidia stock price rally has entered a consolidation and could continue to do so at least until May. The stock is currently on a bull run and is about 89% above the opening price this year. The price is likely to pivot at $889, and will need to stay above this level to reverse the current dowtrend. If the buyers keep NVDA above this level, that could build momentum for a chance to hit $1000. However, a slide below the pivot could trigger a substantial loss in momentum, with support at $810.

Nvidia Stock Forecast 2025

The Nvidia stock forecast 2025 outlook carries on from the 2023 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 41 analysts before the price approaches the top end of their price forecast.

The lower end of the price target forecast in 2024 is $470, while the top end is $1,004. If the price exceeds the $1 400 top end of the 2024 forecast, then 1501.60 and 1673.35 (38.2% and 23.6% Fibonacci extension levels) could enter the picture at that time.

However, there is always the chance of a price retreat below $618, which negates the long-term bullish outlook.

Nvidia: Weekly Chart

Technical analysis of reveals that Nvidia stock price is currently retesting it March 2022 highs of $292. This level is expected to act as a resistance and may result in a rejection. A reclaim of this level will make Nvidia stock price forecast even more bullish. Any strength above this resistance may take NASDAQ: NVDA to its new all-time high in 2023.

Nvidia stock price chart
NASDAQ: NVDA Chart

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 42 institutional firms as a “Strong Buy”. However, as mentioned above, its growth is critically hinged on the success of the AI sector as a whole. 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 profit-taking could be overcome after the earnings report comes out.