Nvidia (NASDAQ: NVDA) has emerged as a powerhouse in the stock market, showcasing impressive performance over various timeframes. From around $48 at the beginning of the year to its current price of $134.04, Nvidia’s ascent is a testament to its strategic positioning in the tech landscape. However, as analysts weigh in on future projections, some investors are left wondering if this upward trajectory has much room left to continue.
Concerns Over 2024 Performance
Atif Malik, an analyst at Citi (NYSE: C), recently expressed caution regarding Nvidia’s short-term outlook. He suggests that the stock might trade sideways in the fourth quarter of 2024, with gross margins expected to stabilize near 72% in the first trimester of 2025. While such projections might disappoint some NVDA shareholders, Malik maintains a bullish long-term perspective on the semiconductor giant.
He anticipates a renewed rally for Nvidia shares around April 2025, coinciding with the increased production and adoption of its upcoming Blackwell chip. Malik’s assessment emphasizes the company’s robust market presence and the potential for the ongoing AI boom to spawn disruptive business models that will benefit Nvidia.
Long-Term Investment Confidence
Despite a tempered 12-month price target of $150—indicating a modest 11.91% increase from current levels—Malik underscores the value of Nvidia as a long-term investment. This sentiment is echoed across Wall Street, with most analysts categorizing the stock as a ‘buy.’ According to TradingView data from October 9, the average price target hovers slightly below Malik’s at $149.54, reflecting widespread confidence in Nvidia’s potential.
Nvidia’s CEO, Jensen Huang, further supports this optimism. During a recent announcement on October 3, Huang revealed that demand for the Blackwell chip is “insane.” He also outlined ambitious plans for annual advancements in AI infrastructure, signaling that Nvidia is not resting on its laurels. This consistent drive for innovation positions Nvidia to capitalize on the burgeoning AI market.
Navigating Potential Risks
Despite the bullish outlook, potential risks remain on the horizon. Market analysts caution against the possibility of the AI boom fizzling out or Nvidia’s ambitious plans failing to materialize. However, the company’s recent stock performance suggests resilience. Nvidia shares surged 4.05% in a single session, climbing from $127.72 to $132.89. If such momentum persists, reaching the $150 mark could happen sooner than anticipated.
Also Read: Jensen Huang’s Wealth Surges To $107 Billion As Nvidia Soars 174.49%!
As Nvidia navigates a complex landscape of market challenges and opportunities, its current trajectory underscores both the excitement and caution surrounding the stock. While short-term fluctuations may cause some trepidation, long-term investors can find solace in the company’s robust fundamentals, ongoing innovation, and the broader AI market’s potential. With Citi’s Atif Malik and other analysts forecasting a strong future for Nvidia, it appears that this tech titan may still have plenty of room for growth in the coming years.
