Nvidia (NASDAQ: NVDA) stock has receded by about 13.2% from its March 2024 all-time-high, and this has sent shivers down the spines of some investors. While some analysts argue that a consolidation is in play before continuation, some are convinced that we are witnessing an unavoidable decline after a scintillating bullrun. However, most agree that the stock could have been overbought and investors are simply taking profit portions of their holdings. Nonetheless, the fundamentals of the global AI market remain strong. Notwithstading its recent decline, NVIDIA is still up 75.6% year-to-date based on its stock price of $845 as of this writing.
Nvidia share price has outperformed most of the blue-chip tech companies this year, including the likes of Apple and Microsoft. The stock rode on the AI hype to register an all-time high price of $974 on March 8, 2024. The company’s AI chips have seen a spike in demand, with tech companies such as Amazon, Meta and Microsoft among its biggest customers.
February, however, was the pinacle of its success, when it saw its value rise by $272 billion in a single day, following a forecast-beating Q3 2023 earnings report. NVIDIA is now the world’s third-largest company in terms of capitalisation, with a value of $2.3 trillion. At its current growth rate, the company is on course to pass Apple by the second quarter of 2024.
What Is Nvidia Stock?
Nvidia is an American multinational fabless chips manufacturer that specializes in the production of graphical processing units (GPU), data science APIs, and system-on-a-chip (SoCs) units. The high-tech company is also a dominant supplier of Artificial Intelligence (AI) hardware.
Nvidia was founded in 1993 to address the computational constraints of that era with a completely different approach. The company was listed on Nasdaq stock exchange on January 22, 1999. Nvidia stock trades on the exchange with the ticker NVDA and is one of the major tech companies in the world.
Nvidia Stock Latest News
Nvidia announces next-gen Blackwell platform
NVIDIA announced in Mid March that it had developed a next-generation AI chip for its Blackwell platform. Blackwell is a platform consisting of software as a service and hardware. The first product for Blackwell will be GB200 chips, which are optimised for GPUs running on artificial intelligence and will be available towards the end of the year. GB200 reportedly have the capacity to train large language(LLMs) models 4x faster than H100 processor and are fitted with over 200 billion transistors. Google, Oracle, Amazon and Microsoft have already set up themselves to provide access to GB200 through their cloud platforms.
Intel to rival NVIDIA’s Blackwell
Not wanting to be left behind in the AI revoution, Intel has been developing its own range of AI-centric GPU products. For a long time, Nvidia has been dominating the GPU and AI market by being the biggest chip manufacturer. In the same way, Intel is the market leader when it comes to CPU chips.
Intel announced on April 9th at the Intel Vision 2024 event that it has developed an advanced version of its AI processors called the Gaudi 3 chip. The Gaudi 3 AI accelerator chips are reportedly 150% faster than NVIDIA’s H100 processors. In addition, they have 2X the network bandwith and 1,5 times the memory bandwith of Gaudi 2 processors. Intel says that the product will be available from the third quarter of the year. The company also revealed that it will ship the product to Dell, HP Enterprise, Lenovo and Supermicro.
Insider Selling At Nvidia
The latest bull run has seen a number of big names at NVIDIA sell their shares. According to the latest news, Nvidia director Tench Coxe, who has been on the company’s board since 1993, has sold 200,000 shares worth $170 million. Another board member, Mark Stevens sold 12,000 shares at $10.2 million.
Nvidia Earnings
Nvidia’s Q4 fiscal year 2024 earnings sparked the fire that has kept NASDAQ: NVDA soaring. With sales tripling to $22.10 billion and net income soaring to $12.29 billion, Nvidia’s fourth-quarter earnings beat forecasts by far and shook Wall Street. Analysts estimate earnings above $20 billion in 2024. Nvidia projects to earn $24 billion, with a margin of plus or negative 2% in the first quarter of fiscal year 2025.
Nvidia Chart
The following chart shows the price action and the technical analysis on the NASDAQ: NVDA chart on a daily timeframe.
As long as the price avoids going below the $863 level, Nvidia stock price prediction would remain bullish for me. A breakdown below the psychological $800 level may push the price towards an imbalance.
Nvidia Stock Forecast Today
The AI hype still seems to be raging. However, the major psychological level of $1000 remains unclaimed by Nvidia stock. If bulls want to target more upside, this level needs to be reclaimed and flipped into support soon.
Technical analysis shows that breakdown below $830 support is possible if resistance persists at the $863 pivot mark. In the coming wees, the May earnings release and US-China relations could impact the NVIDIA stock price. That said, the RSI indicator shows that the stock is oversold, and a pullback could be imminent.
Nvidia Stock Price Prediction 2024
The NVDA chart is on a strong upside momentum, and it is probable that we might see it hit multiple new all-time-highs. However, as stated above, the stock is currently expensive, as it has been oversold for a long period. Even with continuation, the stock will likely face rejection at the psychological level of $1,000. Look for consolidation towards the $550-$800 range in the medium term, with multiple retests of the range lows and range highs.
Also, analysts are now expecting the Federal Reserve to keep interest rates high until the second half of 2024. These economic conditions won’t be supportive for the stock market. Furthermore, a slowdown in economic activity in China could weigh down on Nvidia stock price.
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Nvidia Stock Price Prediction 2025
Due to multiple fundamental variables involved, Nvidia stock price prediction 2025 is anybody’s guess. However, still we can use some advanced technical analysis to take a shot at this difficult task. A pitchfan analysis on higher timeframe is a very good indicator of a longterm trend. Performing it on the Nvidia chart, gives us a price range of $1060-$1783 by 2025.
Nvidia Stock Price Prediction 2030
The same pithcafork analysis performed above, also gives us a projected Nvidia stock price forecast 2030 of $1693-$2383. If the AI gets a mainstream adoption by that time, then the stock could be easily above $2,500 as well. However, the macroeconomic conditions and the growing competition must also be taken into account.
Where Will Nvidia Stock Be In 5 years?
While in the midterm I expect a major correction in Nvidia shares, in the long term I’m very bullish. After a correction in 2024, I expect the stock of the chip-making giant to perform well beyond 2025.
How Much Will Nvidia Stock Be Worth In 10 years?
Considering the longterm uptrend on Nvidia stock chart, the stock could be trading at $1400. A more conservative price target will be $1200. Both of these price targets are 20-40% above current price level. However, the global economic conditions and the shortage of semiconductors will remain key challenges for the company and must be taken into account.
Why Is Nvidia Stock Dropping?
After hitting an all-time high of $957, NVDA stock is currently having a pullback. The bearish divergence on the Relative Strength Index (RSI) was already predicting this move. Nonetheless, the rally which began after the Q3 earnings report appears to be strong enough to retest the all-time highs once the consolidation comes to an end.
When Does Nvidia Stock Split?
Since getting listed on NASDAQ stock exchange in 1999, Nvidia stock has split five times. The most recent stock split occurred in July 2021 when the stock split 4-to-1. The other four splits happened in 2000, 2001, 2006 and 2007.
How To Buy Nvidia Stock?
You may invest in Nvidia stock in multiple ways. There are many online brokers where you can sign up and buy Nvidia stock within a few minutes. A few big names in the brokerage industry include, Fidelity, Interactive Brokers, Robinhood, IG Prime etc.
How Much Did Nvidia Stock Increase This Year?
Since the start of 2024 (68 days ago), NVDA stock has surged by more than 87%. This makes Nvidia stock, one of the best performing tech stock of this year. The latest financial report of Q4 FY 2024, triggered an exponential run which took the price to its new all-time high.
Conclusion
Even though NASDAQ: NVDA is surging like there’s no tomorrow, NVIDIA stock price prediction for this year is not looking very bullish. I expect at least a pullback to fil the $700-$900 gap in the coming months. If you are looking to invest in Nvidia for a long term, there could be much better entry points in later this year.
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