Nvidia (NVDA)
On January 13, 2025, HSBC Securities (Analyst Rank#57) issued a research report and lowered their 12 month target price for Nvidia’s stock from $195 to $185, while maintaining a Buy rating on the stock. The reduction reflects growing concerns within the investment community regarding potential challenges Nvidia may face in the coming months, such as supply chain issues and a slowing momentum in its key markets. Analysts may be factoring in the risks associated with its exposure to global semiconductor shortages, along with concerns about increasing competition in the artificial intelligence (AI) and graphics processing unit (GPU) sectors. Despite the lowered target price, HSBC’s continued Buy rating signals confidence in Nvidia’s long-term growth potential, especially with its leadership in the AI space and strong demand for GPUs.
On January 10, 2025, Evercore ISI (Analyst Rank#37) updated its target price to $190, maintaining a Buy rating on Nvidia. Evercore is projecting continued strong growth from Nvidia, particularly driven by demand in AI, gaming, and data centers. The analysts believe Nvidia’s strategic positioning in AI chips, along with its advanced GPU technology, will continue to fuel its strong financial performance, making the stock a good long-term investment despite potential short-term headwinds.
Morningstar (Analyst Rank#49) also on January 10th, maintained their Buy rating on Nvidia. Morningstar kept its target at $130, significantly lower than the other analysts’ targets, indicating a more cautious outlook based on valuation or other risks, such as market volatility and increasing competition.
Oppenheimer & Co. (Analyst Rank#29) also maintained a Buy rating with a target price of $175 on January 10th, showing a more moderate stance compared to Evercore ISI’s $190 target. The $175 12 month target forecast reflects a balanced outlook, acknowledging Nvidia’s leadership in cutting-edge technology, but accounting for the broader macroeconomic environment and competitive landscape.
NVDA Stock Forecast & Analysis
The NVIDIA Corporation stock forecast compiled from 40 analysts suggests an average target price of USD 162.72 over the next 12 months. This represents an approximate upside of 19.8% from its most recent closing price of USD 135.91. The forecast reflects a Strong Buy rating from analysts, indicating a generally positive outlook on the stock’s future performance. The Strong Buy rating is typically reserved for stocks that analysts believe have significant potential for growth, driven by favorable market conditions, strong company fundamentals, or industry leadership, all of which are characteristics often attributed to NVIDIA.
Stock Target Advisor’s own analysis provides a Slightly Bullish sentiment on NVIDIA, based on a mix of 11 positive signals and 6 negative signals.
Looking at the recent stock performance, NVIDIA’s stock has experienced some short-term volatility:
- Over the past week, the stock has decreased by -5.93%.
- Over the past month, the stock has seen a slight decline of -1.04%.
- However, over the past year, the stock has seen an impressive surge of +148.42%.
The sharp rise in the past year reflects the market’s growing optimism surrounding NVIDIA, particularly its pivotal role in the AI boom and the increasing demand for high-performance computing. The year-long gain is a testament to the stock’s strong rally, buoyed by favorable earnings reports, increasing market share, and its dominance in the AI, gaming, and data center markets.
Outlook
The combination of Slightly Bullish sentiment from Stock Target Advisor and the Strong Buy consensus from analysts indicates that, despite some short-term price fluctuations, there is broad confidence in NVIDIA’s growth prospects over the medium to long term. Investors remain optimistic that the company will continue to capitalize on its leadership in AI, semiconductors, and GPUs, and that the stock could see substantial upside in the coming months, particularly if it maintains its competitive edge and meets its growth targets.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
