NVIDIA today
As of 4:00 pm ET
- 52 week range
- $49.48
▼
US$153.13
- Dividend yield
- 0.03%
- P/E ratio
- 55.15
- Target price
- $164.15
NVIDIA NASDAQ: NVDA still remains the most important stock after more than two years of dominating the stock market. Its GPU technology opened the door to artificial intelligence, and now NVIDIA is capitalizing on it using a full-stack approach. The CUDA platform is central to advances that now include a new robotics platform, a universal architecture for robotics, and artificial intelligence for PCs. This technology includes advances in the RTX line, the DRIVE platform and DIGITS, a program that brings artificial intelligence to PCs, the endgame for artificial intelligence.
Data centers now rule the world of artificial intelligence, but eventually this technology will fit in the palm of your hand; NVIDIA has all the capabilities for this. Demand for its semiconductor products, including its fully operational Blackwell facility, will remain strong from then on.
NVIDIA is changing the future of artificial intelligence for PCs and autonomous driving
Among the most important details is the transition to autonomous driving. The company introduced the DRIVE Hyperion AV platform, an end-to-end autonomous driving solution built on the Thor AGX SoC. The platform and other advances in AV/robotics, including computer vision, are already being used by companies such as Uber. New York Stock Exchange: UBER and Toyota New York Stock Exchange: TM. Toyota has partnered with NVIDIA to develop the next generation of autonomous vehicles, opening the door to expanding revenue streams and threatening companies like Tesla. NASDAQ:TSLA.
Tesla CEO Elon Musk is betting the company’s growth will focus on autonomous driving and cyber taxis, which NVIDIA could disrupt. Other companies at risk from these developments include Advanced Micro Devices. NASDAQ: AMD and Ambarella NASDAQ: AMBAwhich is interested in developing artificial intelligence for PCs and computer vision.
NVIDIA stock forecast today
$164.15
Growth potential 16.21%Moderate purchase
Based on ratings from 43 analysts
| High forecast | US$200.00 |
|---|---|
| Average forecast | $164.15 |
| Low forecast | $85.00 |
NVIDIA stock forecast details
Initial reaction from analysts to this news is good. MarketBeat tracked comments from the two major firms in the first few hours after the CES keynote. That’s a confirmed rating and price target from Benchmark, along with comments from Wedbush analyst Dan Ives, who says he’s more bullish than ever.
He believes NVIDIA is building on its formidable technology leadership, expanding into new verticals and opening the door to a $5 trillion valuation that could be achieved within 18 months. That’s a potential 65% market cap gain in less than two years for a company that has grown in size significantly over the past two years. In this scenario, the Magnificent Seven would simply become NVIDIA, the most valuable company on the planet.
Benchmark’s confirmed price target matches the revision trend, increasing the consensus price target over time. In early January, consensus was around $165, 10% above critical resistance targets, while the upper range added another 2,000 basis points to it.
The sentiment trend is likely to strengthen over the next few months, so the upper price range and consensus target will continue to rise and give the market lift this year. Reasons to believe valuations will continue to rise include the list of new products expected to hit the market in the first quarter, as well as the continued expansion of data center capacity around the world.
NVIDIA’s revenue and profit forecasts are too low
The consensus forecast for NVIDIA’s results is strong. Analysts expect growth to slow in the fourth quarter and again at F202.6, but this is due to the law of large numbers. The company will grow revenue 72% or more in the fourth quarter and 50% in 2025, up from the triple-digit pace it set last year and 80% growth in the prior quarter, but it’s the dollar value that matters today.
A 50% increase in 2025 would be worth 400% of 2021 revenue in dollars, with full-year 2025 revenue being nearly 12 times 2021 revenue. Higher income levels are sustainable.
Increasing revenue leads to higher margins and higher cash flow, as seen on the balance sheet. The company’s cash reserves grew 50% to more than $38 billion, putting it in a net cash position relative to total liabilities and able to maintain and increase its return on capital.
NVIDIA’s share price reacted positively to the news, rising more than 2% in early pre-market trading. The move took the market to an all-time high, supported by bullish indicators and tailwinds in the market. The all-time high is a critical resistance point; a move above it will lead to another rally, which could be strong. FOMO, or fear of missing out, is possible given the state of the market and NVIDIA’s improving revenue and earnings prospects.
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