Market News

Nvidia’s Soaring Stock: Will It Hit $1,000? Nvidia’s Soaring Stock: Will It Hit $1,000?

  • Nvidia’s stock reached an all-time high, hitting over $540 per share.
  • Investors wonder if the rally will continue beyond these levels.
  • With the stock near critical resistance at $495, a weekly close above this level could propel it to $730 and even $1,000.

Nvidia witnessed a remarkable 239% surge in 2023, significantly contributing to the market’s 24% gain. However, the AI giant is off to a strong start in 2024, marking an 8.46% performance since the new year and hitting a new all-time high, despite the S&P 500’s stagnant movement.

The burning question now is whether Nvidia can sustain this upward momentum throughout 2024 or if the rally has reached its peak.

Nvidia’s exceptional performance in 2023 can be credited to its financial results, consistently surpassing expectations as it dominated the burgeoning field of artificial intelligence, solidifying its position as the market leader in chip production for AI applications.

The company’s Q3 saw sales surge over 200% to $18.1 billion, while net profit soared from $700k to an impressive $9.2 billion in the latest quarterly results. (Source: InvestingPro)

Can the Chipmaker Sustain its Growth?

Nvidia, as the industry front-runner in artificial intelligence, possesses ample room for further growth given the sector’s infancy. Its robust financial start in 2024, coupled with high expectations for the last quarter’s results, reinforces this trajectory. (Source: InvestingPro)

Besides leading the semiconductor industry, Nvidia boasts high scores in profitability, cash flow, and growth, making it an attractive option for long-term investors with regular dividend payments, all pointing to the potential for sustained momentum in 2024. (Source: InvestingPro)

Forecasts for Q4 2023 predict an EPS of $4.5 and a quarterly revenue of $20 billion, with further catalysts for share price momentum if Nvidia continues to outperform. (Source: InvestingPro)

See also  Unleashing Insights: Apple and Amazon Earnings Analysis

Projections for 2024 suggest a 60% rise in EPS to $20 and a 54% revenue increase to $90 billion, which, although lower than 2023’s leap, are subject to revision based on performance throughout the year. (Source: InvestingPro)

The stock’s impressive 2023 performance saw a significant rise in the first half of the year, with a mere 16% increase in the latter half, signifying a consolidation phase. This leaves the stock with a low Price/Earnings ratio relative to the price, making it look attractively undervalued as financials continue to ascend.

Technical Outlook

Technically, the NVDA rally has slowed at Fibonacci expansion levels relative to the previous year’s downtrend, with the Fib 1,272 – Fib 1,618 range marking support and resistance for the share price. (Source: InvestingPro)

If there is a clear weekly close above the critical $495 price level, a renewed rally towards $730 and potentially $1,000 may ensue, underpinned by the Stochastic RSI pointing to a similar trajectory as seen in early 2023. However, a correction should not be discarded, with support at $490 and $450 for potential downswings. (Source: InvestingPro)

***

In 2024, make those tough decisions simple with an AI-powered stock-picking tool. Say goodbye to the dilemma of “which stock to buy next” with ProPicks, offering six market-beating stock-picking strategies and a beauty like “Tech Titans,” outperforming the market by 670% over the last decade!

Claim your discount today and never miss another bull market without knowing which stocks to buy!

Disclaimer: The author does not own any of these shares. This content is prepared for educational purposes only and should not be taken as investment advice.