nvidia headquarters with nvidia sign in front
Investors hoping for outsize gains over the next year may look toward Nvidia (NASDAQ: NVDA). Nvidia dominates the semiconductor market when it comes to chips designed for artificial intelligence (AI) purposes, and even with the stock’s massive move higher, analysts project further upside over the next 12 months.
However, stocks often fail to meet analyst expectations, and a 200% increase over the last year should rightly leave investors questioning how much more near-term upside they might have with Nvidia stock. Hence, investors should take a closer look before deciding whether to buy.
Nvidia analyst recommendations
Nvidia stock trades at just under $500 per share. It has been among the best performers of 2023 amid heightened interest in AI and the company’s ability to support that technology.
According to Tipranks, 34 different analysts have published 12-month projections for Nvidia stock. The estimates range from a low of $560 per share to as much as $1,100 per share. Under the worst-case scenario, Nvidia stock will rise 13%. The best-case scenario would take the stock almost 225% higher, surpassing the impressive performance of the last 12 months.
Nonetheless, the average price target of just over $661 per share implies a 33% upside over the next 12 months. As mentioned before, analysts can be wrong. Still, over the past month, 15 of the 34 analysts highlighted in Tipranks have reiterated estimates, a reflection of how closely they watch the AI stock.
Nvidia’s financials
Admittedly, the recent financials appear to more than back up the hype. In the third quarter of its fiscal 2024 (ended Oct. 29), Nvidia achieved record quarterly revenue of more than $18 billion. This was up 206% year over year and 34% from the previous quarter.
Also, since the rise in operating expenses was comparatively modest, net income totaled $9.2 billion. In the year-ago quarter, Nvidia earned only $680 million. That’s an almost 1,260% increase!
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Nvidia Income Statement Visualized, Q3 FY24
Moreover, if Nvidia meets its expected $20…
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