TLDR:
- Nvidia stock hit record high of $143.71 (up 4%) amid strong analyst support
- Bank of America raised price target from $165 to $190; CFRA from $139 to $160
- Wall Street consensus expects ~$1.29 trillion revenue between 2025-2030
- Q3 earnings expectations: EPS $0.74 (84% YoY increase), revenue $33.1B (83% increase)
- 67 analysts rate Nvidia as Outperform, 7 Hold, 1 Sell
Wall Street analysts maintained their bullish stance on Nvidia (NVDA) as the stock reached a new record high of $143.71 on Monday, October 21, 2024, marking a 4% increase.
The surge comes ahead of the company’s November earnings report and follows multiple price target increases from major financial institutions.
Bank of America raised its price target for Nvidia from $165 to $190, while CFRA increased its target from $139 to $160. The consensus among analysts suggests a 12-month price target of $148.37, according to Bloomberg estimates.
The optimism stems from Nvidia’s dominant position in the AI chip market, particularly in enterprise AI partnerships with tech giants like Microsoft and Accenture. Bank of America analyst Vivek Arya highlighted Nvidia as the “partner of choice” for enterprise AI hardware and software solutions.
Recent financial data supports the positive outlook. Wall Street expects Nvidia to report third-quarter earnings per share of $0.74, representing an 84% increase from the previous year, alongside revenue growth of 83% to $33.1 billion. The company’s fiscal year 2024 showed impressive results with revenue of $61 billion, up from $27 billion in 2023.
Looking ahead, consensus estimates from Visible Alpha project Nvidia’s revenue to reach approximately $1.29 trillion cumulatively between fiscal years 2025 and 2030.
For fiscal year 2025, analysts expect revenue between $121.6 billion and $134.3 billion, with projections extending to $376.8 billion by fiscal year 2030.
The AI chip market itself is expected to maintain strong growth, with International Business Strategies forecasting 99% growth in 2024 and 74% in 2025. Nvidia’s CEO Jensen Huang has reported “insane” demand for the company’s AI chips, while positive earnings reports from industry partners Micron and TSMC have further strengthened market confidence.
Current analyst ratings reflect strong market confidence, with 67 analysts maintaining Outperform ratings, seven holding neutral positions, and only one recommending selling the stock.
Despite short-term fluctuations and concerns about potential AI spending slowdowns, Nvidia’s stock has gained nearly 3% over the past week and more than 20% in the last month.
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