In each of the past four years, Wall Street has traded off bear and bull markets. These swings have been particularly noteworthy for the predominantly growth-focused Nasdaq-100, which comprises 100 of the largest nonfinancial companies listed on the Nasdaq stock exchange.
After tumbling 33% during the 2022 bear market, the innovation-powered Nasdaq-100 rallied by a jaw-dropping 54% in 2023. Such outperformance isn’t lost on Wall Street’s most experienced investors.
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Although Wall Street’s consensus price targets often point to additional upside for industry-leading businesses, three Wall Street analysts are forecasting upside of up to 127% in 2024 for three Nasdaq-100 components.
Nvidia: Implied upside of 79%
The first Nasdaq-100 stock with jaw-dropping upside potential in the new year just happens to be the top megacap stock from 2023. I’m talking about semiconductor stock Nvidia (NASDAQ: NVDA). Analyst Hans Mosesmann of Rosenblatt Securities has attached a lofty $1,100 price target to shares of Nvidia, which, at its closing price of around $616 per share on Jan. 25, implies additional upside of 79%. It would also add about $1.2 trillion to Nvidia’s current market cap of $1.52 trillion.
It’s no secret that the buzz surrounding Nvidia involves artificial intelligence (AI). Nvidia’s A100 and H100 graphics processing units (GPUs) have become the infrastructure backbone of AI-accelerated data centers. Although estimates vary, it’s not out of the question that Nvidia will account for 90% or more of the share of GPUs being deployed in these high-compute data centers this year.
In addition to being the premier choice for businesses looking to lean on AI as a growth tool, Nvidia should see its production rapidly ramp up in 2024. Taiwan Semiconductor Manufacturing is meaningfully increasing its chip-of-wafer-on-substrate capacity, which will allow Nvidia to deliver more A100 and H100 chips this year. Thanks to its data center segment, Nvidia’s total sales are expected to catapult from a reported $27 billion in fiscal 2023 to an estimated $93.4…
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