NVIDIA " absent " earnings season, the stock price fell but still good? Future trend full forecast,

As of Thursday, the stock price of Nvidia (NVDA) has been falling continuously, which has made some investors doubt whether to sell the stock. However, at the same time, Nvidia’s recent purchase volume has still increased. The stock’s accumulation/allocation rating is D, which is an improvement from the E rating two weeks ago. In addition, the trading volume this week is light, indicating that selling may not be a big problem, and most investors tend to continue holding the stock as Nvidia heads into its earnings report.

In addition, NVIDIA will release its financial report on May 22nd. Earlier, most companies had already released their financial reports. The company dominates the chip field, which is responsible for artificial intelligence computing, and has naturally become the market focus of emerging technologies. Its released products have shown healthy profit growth, and the market has a positive attitude towards its unreleased financial report. The release of the financial report will bring variables to the stock price. The decline in stock price at this time may only be a temporary fluctuation, and the stock price may still rebound in the future.

Some investors expect to buy when the stock rebounds

Now that NVIDIA’s stock price is falling, some investors have good expectations for it and see this plunge as a buying opportunity, waiting to buy when the stock rebounds.

At the same time, investors are waiting for Nvidia’s financial report on May 22. If the stock rises after the report is released, a breakthrough in a large number of transactions will be a buying signal.

On April 24th, Nvidia signed an agreement to acquire Run.ai. According to TechCrunch, the transaction price is $700 million. Run.ai helps developers use AI tools more efficiently and reveals Nvidia’s roadmap and priorities. Run.ai partnered with Nvidia’s cloud AI products to help enterprises “instantly access AI supercomputers through browsers”.

The stock has surged 239% in 2023 and has risen more than 80% so far this year.

Market analysts still hold bullish target price for NVIDIA stock

Following its artificial intelligence developer event in March, UBS analyst Timothy Arcuri raised NVIDIA’s price target to $1,100 from $800 and maintained a buy rating.

Arcuri said that after the launch of the Blackwell platform, “we believe that Nvidia is at the forefront of a new wave of demand from global enterprises and sovereign countries, and each sovereign country may be as large as the US large cloud customers.”

Prior to the meeting, Truist analyst William Stein raised NVIDIA’s target stock price from $911 to $1,177. He foresees stronger demand for NVIDIA chips in 2024 and 2025. Analysts at HSBC also raised their target price from $880 to $1,050. Both Truist and HSBC maintained their buy ratings on the stock.

Analysts at US Bank also recently raised their price target to $1,100 from $925.

For the quarter ending in April, analysts surveyed by FactSet expect earnings per share of $5.20 and sales of $24.60 billion. This means earnings growth of 473% compared to the same period last year, while sales are expected to increase by 242%.

Nvidia’s fourth quarter results are better than expected

Nvidia again beat expectations in February, reporting earnings of $5.16 per share and sales of $22.10 billion, both beating fourth-quarter expectations of $4.59 and $20.40 billion.

Previously, the company stated that the supply limitation of artificial intelligence chips is the biggest challenge for growth. Customers may also wait for the upcoming next-generation B100 chip.

Baird’s analysts recently stated that this is a good thing. They said that the B100 chip will have better performance and may have a higher average selling price.

In addition, the artificial intelligence chipmaker disclosed its latest investments in several smaller areas of artificial intelligence in filings with the Securities and Exchange Commission.

NVIDIA’s explosive performance

NVIDIA’s current stock trend can be traced back to the end of 2023. At that time, in November, the third quarter results announced before the stock price broke through the double bottom, and the buying point was 476.09.

The week before the results were announced, Nvidia announced at the SC23 supercomputing conference in Denver that it plans to launch a new artificial intelligence computing platform and an advanced data center chip.

Despite the impressive performance in the fourth quarter, the stock price fell after the financial report was released, but found support at the 50-day moving average. This formed a platform base for the stock, with a buying point of $505.48. The company stated that the earnings per share were $4.02.

Sales reached $18.12 billion as of Oct. 29. Analysts polled by FactSet had expected earnings per share of $3.37 and sales of $16.19 billion.

Compared to the same period last year, Nvidia’s revenue soared by 593%, and sales increased by 206%.

Data center demand is the main reason. NVIDIA’s data center sales increased by 279% from the same period last year, reaching a record $14.51 billion. Data center sales also increased by 41% compared to the quarter ending in July.

Artificial intelligence products drive growth

NVIDIA is known for its pioneering approach. The company was an early pioneer in graphics processing units, which greatly improved the computer gaming experience. In addition to gaming, NVIDIA’s chips are now also used in industries such as healthcare, automotive, and robotics.

In March 2023, with the launch of OpenAI’s ChatGPT, generative AI made a leap forward. Huang Renxun, CEO of NVIDIA, said that NVIDIA’s artificial intelligence supercomputer paved the way for the “iPhone moment of artificial intelligence”.

This helped Nvidia reverse its declining performance. The company reported three quarters of year-on-year sales decline and four quarters of revenue contraction. But then the company achieved record revenue and profit growth in the last two quarters.

According to the latest report from market research firm Gartner, global AI chip revenue will grow 26% from $53.40 billion in 2023 to $67.10 billion in 2024, and is expected to double to $119 billion by 2027.

NVIDIA’s graphics processing units help accelerate computing in data centers and AI applications.

NVIDIA receives the highest rated price

NVIDIA’s stock received a full score of 99 in both comprehensive rating and earnings per share rating. Its relative strength rating is 98, indicating that its performance exceeds the vast majority of stocks in the Investor Business Daily database.

NVIDIA is also one of the “seven giants” in the stock market surge in 2023. Other stocks include Apple (AAPL), Microsoft, Google’s parent company Alphabet, Meta Platforms, Tesla, and Amazon (AMZN). Some of these tech giants rely on NVIDIA’s advanced chips. NVIDIA is also one of the stocks expected to perform well in the market in 2024.

Currently, NVIDIA ranks first in the fabless semiconductor group and 7th out of 197 industry groups in IBD. The artificial intelligence stock frequently appears on the IBD 50 , IBD industry leaders, and technology leaders lists. In addition, the stock is on the IBD leaderboard.

How to make investment choices

Based on the previous analysis, it can be found that there are many positive factors in NVIDIA’s performance and products. Many analysts hold a positive view of it. NVIDIA’s market value exceeds $2 trillion. Although it is unlikely to have extraordinary returns, it is still possible to perform well. In addition, the company will release its financial report. Judging from the sales volume of the products that have been released so far, the financial report results have a great positive feedback tendency, which may also bring further increase in stock price, providing investors with a more confident entry opportunity. Investors can choose to get on board at the right time.

At present, investors who want to enter the market can go to the multi-asset trading wallet BiyaPay to search for its stock code to monitor the trend of the market, wait for the right time to board the train, and directly deposit U into the platform to exchange for US dollars at the right time. They do not need an offshore account to invest directly; in addition, investors can also bind the offshore account of Jiaxin Wealth Management in BiyaPay, withdraw US dollars to Jiaxin NVIDIA stock, withdraw on the same day, and receive the money on the same day without being involved in the market.

Source: Investor’s Business Daily
Editor: BiyaPay Finance