As Nvidia’s (NASDAQ: NVDA) stock price persists in attracting attention owing to its influence on the broader technology sector, OpenAI’s latest artificial intelligence (AI) application has generated forecasts on how the equity could fare by the close of 2024.
This predicted price estimate coincides with a period during which Nvidia is experiencing short-term favorable sentiment, mainly propelled by the company’s acknowledgment of significant demand for its semiconductors, as reported by Finbold on September 12.
At the time this report was published, the semiconductor producer held a valuation of $119, reflecting an increase of nearly 2% within the previous 24 hours. The firm’s capitalizing on the AI boom has enabled NVDA to surge nearly 150% year-to-date (YTD).
Indeed, Nvidia’s impressive stock rise has in part allowed the firm to consistently reward its shareholders through dividends.
OpenAI o1 NVDA stock prediction
For its year-end 2024 stock price forecast, Finbold employed OpenAI’s o1 tool, crafted for complex inquiries, to evaluate factors likely to affect NVDA in the upcoming months.
According to the AI mechanism, Nvidia’s share trajectory will continue to be influenced by the company’s engagement in catering to the AI and machine learning markets. It suggested that as these sectors grow, Nvidia is positioned to benefit.
Moreover, the firm’s contribution to facilitating cloud computing and big data analytics intensifies the demand for robust data center solutions, where Nvidia boasts a strong presence. The tool also highlighted the tech firm’s impact on the gaming industry via its GPUs, which are likely to enhance the share price.
The OpenAI tool also emphasized the necessity of monitoring competitors within the semiconductor field. It particularly pointed out that Nvidia needs to maintain a technological edge over rivals like Advanced Micro Devices (NASDAQ: AMD) through innovation to preserve its market standing.
Additionally, the tool underlined the importance of consistent revenue and earnings growth, which directly influences investor confidence. Recently, Nvidia showcased significant revenue growth, reporting $30.04 billion—a 122% increase year-on-year for Q2 2024. For Q3 2024, the company targets approximately $32.50 billion in revenue with an expected gross margin of 75%.
On the downside, the AI model warned that economic elements such as a potential recession or supply chain issues could affect the share price.
While the AI tool did not disclose Nvidia’s precise price at the end of 2024, it noted that the stock could trade higher than the current $119 if the company maintains its market share.
Nvidia technical assessment
Meanwhile, stock analyst Peter DiCarlo mentioned in a September 13 X post that Nvidia has been following a trend of higher lows, indicating a general upward movement. Nonetheless, it continues to produce lower highs, which has obstructed a clear breakout. DiCarlo suggested that breaking this pattern would require the stock to surpass the $130 mark, potentially igniting a more significant rally.
“I view $120 as the ceiling before we observe a re-test and possible rejection,” he commented.
In the near term, the analyst projected that Nvidia might ascend to the $120–$124 range, a zone associated with institutional selling. Historically, this level has triggered sell-offs; thus, if the trend continues, NVDA may undergo another pullback before regaining its upward momentum.
He anticipated a potential decline to around $110–$108 by the end of September, with a breakout likely by year-end. Nvidia could conclude between $140 and $150, depending on a solid market catalyst.
The overall optimistic sentiment for Nvidia is further supported by Bernstein analyst Stacy Rasgon, who, on September 12, affirmed an “outperform” rating with a target price of $155.
According to Rasgon, while AI stocks may have paused recently, the demand for Nvidia’s chips remains vigorous, a critical element for continued growth.
In this context, Nvidia investors have minimal reasons for concern after CEO Jensen Huang acknowledged the company is facing significant demand, creating tension among clients as they wonder if the semiconductor giant can satisfy their needs.
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