Analysts Predict Further Growth for Nvidia Stock

Nvidia Stock Set for Continued Growth: Analysts Forecast Further Gains

Analysts Raise Price Targets for Nvidia Stock

Nvidia (NVDA) stock received several price-target hikes on Tuesday, reflecting the AI chipmaker's strong performance following its impressive first-quarter earnings report. Three Wall Street firms raised their price targets just a day after three other firms had done the same. Argus Research increased its price target from $110 to $150, maintaining a buy rating. Similarly, Oppenheimer upped its target to $150 from $110, reiterating its outperform rating. Evercore ISI raised its target to $145 from $131, also maintaining an outperform rating.

Nvidia Stock Takes a Breather After Breakout

Despite the bullish price target hikes, Nvidia stock dipped slightly by 0.7% to close at $120.91 on Tuesday, after a modest gain of 0.8% to $121.78 on Monday. This minor pullback comes after Nvidia's stock breakout on May 23, where it emerged from a 10-week consolidation pattern at a split-adjusted buy point of $97.40, according to IBD MarketSurge charts. Although Nvidia is currently in the 20%-to-25% profit-taking zone of its breakout, it remains under the eight-week hold rule as per IBD trading guidelines.

Analysts Confident in Nvidia's Continued Momentum

Argus analyst Jim Kelleher expressed confidence in Nvidia's continued momentum, suggesting that its shares "have much further to go." He highlighted growth in AI and data center markets as key drivers, alongside potential acceleration in Nvidia's other segments such as gaming, professional visualization, and automotive. Oppenheimer analyst Rick Schafer echoed this sentiment, emphasizing Nvidia's robust product roadmap for its graphics processing units and networking products. "We see NVDA as best positioned in AI, benefiting from their full stack AI hardware, networking, and software solutions," Schafer noted in a client note.

Nvidia's Strategic Collaborations and Market Presence

In addition to the price target hikes, Nvidia's strategic collaborations continue to enhance its market presence. For instance, cloud security software firm Zscaler (ZS) announced a collaboration with Nvidia to accelerate AI-powered co-pilot technologies for enterprises. Following the announcement, Zscaler's stock rose by 2% to close at $187.65 on Tuesday.

Nvidia's prominence is further evidenced by its inclusion in five IBD lists: Leaderboard, IBD 50, Big Cap 20, Sector Leaders, and Tech Leaders. This highlights the company's strong performance and optimistic outlook among investors and analysts alike.

Conclusion

Nvidia's recent price target hikes and positive analyst reviews underscore the company's strong position in the AI and data center markets. With a clear product roadmap and strategic collaborations, Nvidia is well-positioned for continued growth and momentum. Investors should keep an eye on Nvidia's stock as it navigates the profit-taking zone and looks to capitalize on its market strengths.