Wall Street Analyst Predicts Nvidia Stock to Soar to $1,000

1 Wall Street analyst thinks Nvidia Stock is heading to $135. Is it a buy?

You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More Nvidia Corp (NASDAQ: NVDA) is gearing up for the release of its second-quarter results on Aug. 28, and sentiment toward the stock on Wall Street has been moving in a bullish direction. In a note published Monday, Goldman Sachs analyst Toshiya Hari reiterated a buy rating on the artificial intelligence (AI) leader and maintained a price target of $135 per share on the stock. At the time of the note's publication, Hari's target on the stock suggested potential upside of roughly 9%, but subsequent gains have pushed the implied upside down. Is Nvidia a worthwhile buy heading into its hotly anticipated earnings report? Can Nvidia crush expectations again? In addition to highlighting Nvidia's strong competitive positioning in AI and other accelerated computing applications, Goldman's latest note on Nvidia left the door open for a positive valuation revision coming out of the earnings report. With the first-quarter report that it published in May, Nvidia guided for roughly $28 billion in sales and a gross margin of 74.8% in the second quarter. The company also said that it expected non-GAAP (adjusted) operating expenses to come in at $2.8 billion for the period. Over the last year, Nvidia has repeatedly delivered results that far exceeded both its own targets and Wall Street's. As a result, expectations are very high. For example, HSBC expects the tech leader to report revenue of $30 billion. Meanwhile, the average analyst estimate calls for the business to post $28.6 billion in sales. Capital spending reports and guidance from Microsoft and other key customers suggest that there's a good chance that Nvidia will once again beat the average analyst estimates, but the stage may be set for valuation volatility in the near term. The AI front-runner may need to post revenue and earnings that come in significantly above the average Wall Street targets to trigger another big rally in the near term. Nvidia still looks like a worthwhile buy ahead of earnings, but investors may want to use a dollar-cost-averaging strategy to minimize risk.

1 Wall Street Analyst Thinks Nvidia Stock Is Heading to $135. Is It a Buy? | The Motley Fool

Expectations for Nvidia are sky-high ahead of its upcoming Q2 report. Can the AI leader keep winning? Nvidia (NVDA -2.16%) is gearing up for the release of its second-quarter results on Aug. 28, and sentiment toward the stock on Wall Street has been moving in a bullish direction. In a note published Monday, Goldman Sachs analyst Toshiya Hari reiterated a buy rating on the artificial intelligence (AI) leader and maintained a price target of $135 per share on the stock. At the time of the note's publication, Hari's target on the stock suggested potential upside of roughly 9%, but subsequent gains have pushed the implied upside down. Is Nvidia a worthwhile buy heading into its hotly anticipated earnings report? In addition to highlighting Nvidia's strong competitive positioning in AI and other accelerated computing applications, Goldman's latest note on Nvidia left the door open for a positive valuation revision coming out of the earnings report. With the first-quarter report that it published in May, Nvidia guided for roughly $28 billion in sales and a gross margin of 74.8% in the second quarter. The company also said that it expected non-GAAP (adjusted) operating expenses to come in at $2.8 billion for the period. Over the last year, Nvidia has repeatedly delivered results that far exceeded both its own targets and Wall Street's. As a result, expectations are very high. For example, HSBC expects the tech leader to report revenue of $30 billion. Meanwhile, the average analyst estimate calls for the business to post $28.6 billion in sales. Capital spending reports and guidance from Microsoft and other key customers suggest that there's a good chance that Nvidia will once again beat the average analyst estimates, but the stage may be set for valuation volatility in the near term. The AI front-runner may need to post revenue and earnings that come in significantly above the average Wall Street targets to trigger another big rally in the near term. Nvidia still looks like a worthwhile buy ahead of earnings, but investors may want to use a dollar-cost-averaging strategy to minimize risk.

Is Nvidia Stock Going to $145? 1 Wall Street Analyst Thinks So. | The Motley Fool

Nvidia (NVDA 0.58%) investors have been on a wild ride this year. The artificial intelligence (AI) chipmaker soared as much as 174% in 2024, as excitement about the rapid adoption of generative AI has captivated Wall Street and Main Street alike. With those gains, however, has come extreme volatility, as the value of this emerging opportunity remains uncertain. In recent weeks, the stock reversed course, plunging as much as 25%. Fears about the state of the economy have called into question the staying power of AI and how much further Nvidia can grow from here. The stock has regained much of those losses, but the questions remain. One analyst believes Wall Street is setting its sights too low. HSBC analyst Frank Lee recently reiterated his buy rating on Nvidia stock and increased his price target to $145. That represents potential upside for investors of 14% compared to Tuesday's closing price. The analyst believes that Nvidia will report $30 billion in sales for its fiscal second quarter, generating revenue of $33 billion and $36 billion in the quarters that follow. The analyst notes that spending to upgrade data centers is on track to continue into 2025, driven by strong demand for generative AI. The analyst has obviously done his homework. The three biggest cloud infrastructure providers, Amazon Web Services (AWS), Microsoft Azure, and Alphabet's Google Cloud, which are Nvidia's biggest customers, have all been crystal clear about plans to increase their capital expenditure spending to meet the accelerating demand for AI. As the gold standard for AI processing, Nvidia is likely to be the beneficiary of much of that spending. Furthermore, the company's biggest partners and rivals are reporting strong sales, which suggests Nvidia's results will be equally robust. If the analyst's calculations are correct, Nvidia's revenue will top $125 billion in fiscal 2025, more than double the $61 billion it earned last year -- and marking its second consecutive year of triple-digit growth.

1 Wall Street Analyst Thinks Nvidia Stock Is Going to $160. Is It a Buy? | The Motley Fool

Investors are highly anticipating Nvidia's (NVDA 0.37%) quarterly earnings report on Aug. 28. After recently sinking below $100 per share, Nvidia stock has surged by about 30% in just two weeks. But one Wall Street analyst thinks there's more gains to come. In a new research report released Monday, Melius Research analyst Ben Reitzes said he thinks there's still time for investors to buy Nvidia stock, which he thinks will reach $160 per share. That would imply another 23% upside for shares of the advanced semiconductor company. Spending to expand the use of artificial intelligence (AI) by both large and small tech companies has exploded. And Nvidia has been the biggest beneficiary to date. Management itself expects to report revenue of about $28 billion in its upcoming earnings report. That would be more than double the $13.5 billion the company reported in the prior-year period. The company has handily beat its own revenue estimates in the latest string of earnings reports, so investors might be expecting more. Regardless of whether it meets or beats estimates, the Melius Research analyst sees enough market opportunity for Nvidia to realize soaring free cash flow in the near future. Reitzes wrote in his research report that Nvidia "has the potential to deliver over $270 billion in free cash flow over the next 3 years. Given this surge in cash flow, it should be able to return an overwhelming amount of that cash to shareholders." The recent run in Nvidia's stock likely has some good news from the upcoming earnings report already baked in, so investors shouldn't necessarily expect a spike in shares after the report. But longer term, strong net income and cash flow should continue, making it a stock worth owning.