As Nvidia’s (NASDAQ: NVDA) stock continues to ascend, one portfolio manager predicts that this upward movement will likely persist in the coming months, with a potential target nearing $300.
Currently, Nvidia’s stock is trading at $133, showing daily gains of over 4%. The tech company has gained momentum lately after breaking through the $120 resistance level, leading to a 14% increase over the last week and a remarkable 177% rise in 2024.
The potential for further growth is supported by Nvidia’s strong fundamentals, strategic market positioning, and ongoing demand for its products in crucial sectors, especially in artificial intelligence, according to Todd Gordon, founder of Inside Edge Capital, in an X post dated October 8.
Pathway for NVDA’s Stock to Hit $285
Gordon’s technical analysis suggests that NVDA is currently navigating a wave-four triangle breakout within an Elliott Wave context. This suggests an upward trajectory, positioning NVDA to potentially reach $285 by 2025.
He forecasted earnings per share (EPS) of $2.84 for 2025, translating to 46 times the expected earnings. While this may appear high, Gordon argued that the current valuation is justified given Nvidia’s growth trajectory.
Gordon is particularly hopeful regarding the conservative revenue projections for the next four quarters. Analysts anticipate revenues of $32.9 billion, $36.5 billion, $39.5 billion, and $42.9 billion for the coming year. However, these figures may be revised upwards owing to increased demand in Blackwell, a key division of Nvidia’s business. “With Blackwell demand reportedly red hot, the risk for upward adjustment in those revenues is likely,” Gordon stated.
While Gordon acknowledged the possibility of a correction for Nvidia, he pointed out that its status as a $3 trillion technology company lessens fears over valuation when contemplating long-term growth prospects.
Echoing this sentiment, JPMorgan (NYSE: JPM) analyst Harlan Sur emphasized Blackwell’s potential in 2025, highlighting its ability to support over 100 system configurations. He believes that Nvidia’s ventures in AI and accelerated computing will be essential for continued expansion.
Nvidia’s Immediate Target of $150
Based on recent price trends, breaking through the $150 mark represents the next significant milestone for Nvidia, as noted by Peter DiCarlo. He remarked that “nothing is stopping” Nvidia from reaching $150 after overcoming the $130 level.
Further insights from Wyckoff Analytics indicated that the chip manufacturer is entering a breakout phase after moving past the $130 resistance. In a post on X dated October 9, the analyst pointed out that this breakout follows a consolidation period, with the stock surging above the descending trendline that had constrained its growth since July’s previous highs.
This technical breakout is additionally reinforced by strong trading volumes, indicating investor confidence and the likelihood of continued upward movement.
With Nvidia currently thriving, investors are eager for the arrival of Blackwell chips, which CEO Jensen Huang describes as facing overwhelming demand.
However, it is essential to recognize that the semiconductor’s ongoing rally is not assured, given recent challenges such as delays in Blackwell chip releases, regulatory concerns, and competitive pressures. These factors had previously hindered NVDA’s progress past the $120 level.
In conclusion, Nvidia’s recent accomplishments have fostered optimistic projections for future growth. Despite potential obstacles, the prevailing sentiment is that the introduction of Blackwell chips could represent a critical turning point for the company.
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