Will Nvidia stock keep soaring? Here’s what the experts say

Our writer takes a look at Wall Street’s latest price targets for Nvidia stock, as well as the third-quarter earnings forecast.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Bronze bull and bear figurines

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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.

Another day, another achievement for Nvidia (NASDAQ: NVDA) stock yesterday (5 November). That’s because the chipmaker reclaimed its crown from Apple to become the world’s largest company.

Both have market-caps above $3.3trn! Yet Nvidia ended 2014 with a market-cap of just $11bn, meaning its meteoric rise is truly mind-boggling. Unprecedented even.

Created with Highcharts 11.4.3Nvidia PriceZoom1M3M6MYTD1Y5Y10YALL5 Nov 20195 Nov 2024Zoom ▾Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '242020202020212021202220222023202320242024www.fool.co.uk

But where do the experts see the Nvidia share price heading over the next 12 months? Let’s take a look.

Consensus forecast

Now, I’d take the following predictions with a pinch of salt. In my experience an analyst’s price target can resemble a weather vane in shifting winds, constantly adjusting to follow the stock’s latest direction.

Source: TradingView

As we can see, Wall Street analysts’ 12-month Nvidia price targets cover a wide range. We’ve got a high of $202, representing potential share price growth of 46% from $139. Then there’s a low of $90, suggesting a possible 35% decline.

From the 55 analysts offering 12-month share price targets, the average figure’s $150. That’s around 8% higher than $139.

The main takeaway here is that nearly every single broker is bullish on the stock. An incredible 60 out of 65 analysts rate it as either a Strong Buy or Buy! None currently have the stock down as a Sell.

Analyst recommendationsNovember 2024
Strong buy51
Buy9
Hold5
Sell0
Strong sell0

Of course, this could quickly change after the company reports its Q3 2025 earnings on 20 November.

What are the experts expecting in Q3?

In recent years, Nvidia’s tended to smash Wall Street expectations. But this trick could get harder to repeat and spending on artificial intelligence (AI) chips becomes more predictable.

In a worst-case scenario, AI spending could start falling sharply next year as large tech firms reign in their enormous investments. It’s possible we look back in a few years’ time and see Nvidia’s revenue growth was unsustainable.

It’s also worth remembering that transformative new technologies almost always come with initial investor hype, including overestimations of their immediate world-changing applications. The internet, 3D printing, and cryptocurrencies spring to mind. All created bubbles.

As US scientist and futurologist Roy Amara famously said: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run”.

Is it truly different this time with generative AI? Only time will tell. But for now at least, demand for Nvidia’s AI chips remains incredibly high and analysts expect more eye-popping growth in Q3.

Q3 ForecastYear-on-year growth
Revenue $32.9bn81.8%
Operating profit $21.7bn87.9%
Earnings per share (EPS) $0.7484.5%

Not an AI bear

To be clear, I’m not a bear that’s come out of its cave on AI. CEOs far smarter than me are predicting transformative things from the disruptive technology.

And despite selling my holding in Nvidia earlier this year, most of my portfolio’s still invested in firms harnessing AI. Axon Enterprise, for example, has developed an AI tool that creates a rough draft of a police report using body-worn camera audio. It can save each officer an hour of paperwork every shift!

Still, Nvidia stock’s currently priced for absolute perfection. So I’d be careful about investing a large amount. Instead, I’d wait for pullbacks and consider pound-cost averaging my way into a position over time.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Ben McPoland has positions in Axon Enterprise. The Motley Fool UK has recommended Apple, Axon Enterprise, and Nvidia. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

piggy bank, searching with binoculars
Investing Articles

An underrated value stock? I think investors should take a closer look

This value stock appears overlooked by the market. And that’s quite rare right now as the stock market recovers from…

Read more »

Young Black woman looking concerned while in front of her laptop
Investing Articles

Up 35% in a month! But is this electrifying UK growth share a total gamble?

Harvey Jones wishes he'd had a flutter on gaming group Entain last year, as it's now smashing the FTSE 100.…

Read more »

Investing Articles

Should I buy the most popular FTSE 100 stock on AJ Bell?

Our writer can see the appeal of this recently popular dividend stock from the FTSE 100 index. But will he…

Read more »

Cargo containers with European Union and British flags reflecting Brexit and restrictions in export and import
Investing Articles

UK shares are booming again as the FTSE recovers! Here’s what I’m watching

Mark Hartley takes a deep dive to see which UK shares are lagging behind in the current market rally. Has…

Read more »

Businessman hand flipping wooden block cube from 2024 to 2025 on coins
Investing Articles

I bought 1,779 Legal & General shares 2 years ago – see how much dividend income I’ve got since

Harvey Jones holds Legal & General shares and has been pretty underwhelmed by their performance so far. The dividend is…

Read more »

Middle-aged black male working at home desk
Investing Articles

Is the FTSE 100 set to soar? Here are 3 ways to aim to cash in

My outlook for the FTSE 100 is definitely brightening as we get deeper into 2025. How can we make the…

Read more »

Investing Articles

£10k invested in NatWest shares on the ‘Liberation Day’ dip is today worth…

Harvey Jones looks at how NatWest shares have been knocked off course during recent market turbulence, but are now bouncing…

Read more »

Tariffs and Global Economic Supply Chains
US Stock

£5,000 invested in Nvidia stock just before the tariff news is now worth…

Jon Smith talks through the erratic movements in Nvidia stock over the past six weeks and reveals where an investor…

Read more »