Nvidia Stock Forecast 2024, 2025 & Beyond: Will the Rally Continue or Finally Stall Out?

Why Trust Techopedia
Why Trust Techopedia

Can life get any better for investors in Nvidia (NVDA)? The NVDA stock price has almost doubled to $949.50 since the start of 2024.

The latest increase came as the stock market darling beat earnings expectations for the sixth consecutive quarter.

Nvidia Stock YTD Performance.
Nvidia Stock YTD Performance. Source: TradingView

Nvidia has found its place at the apex of the AI revolution as the manufacturer of the advanced chips needed to power artificial intelligence. But while some companies are simply riding the AI hype, Nvidia is seeing the kind of AI-fulled growth many startups would only dream of, all while valued at over $2.3 trillion.

Featuring expert analysis of Nvidia’s recent stock trends, this article contains the latest NVDA news, key market drivers, and Nvidia stock forecasts for 2024, 2025 and beyond to 2030, equipping you with the knowledge to make well-informed investments.

Key Takeaways

  • The stock has almost doubled in price since the start of 2024 but many analyst are still raising their Nvidia share price forecasts.
  • In May, Nvidia surpassed expectations again with a quarter where earnings easily beat forecasts. It reported earnings of $5.98 per share and revenues of $26 billion.
  • Among recent Nvidia news, the announcement of the B200 flagship microchip at their annual conference GTC 2024 was another big step to bolster their AI capabilities with a chip that is reportedly 30 times faster at certain tasks than its predecessor.
  • Nvidia is also nurturing the broader AI industry with its own investments into up-and-coming AI firms like SoundHound (SOUN), Nano-X Imaging (NNOX), Recursion Pharmaceuticals (RXRX) and TuSimple Holdings (TSPH).

Summary of the Analysts’ Nvidia Stock Forecasts for 2024 & 2025

The following table shows the latest Nvidia stock forecasts for 2024/2025, as of May 23, 2024, with analyst upgrades/downgrades.

Analyst Ratings and 1-Year Nvidia Stock Forecasts 

Date Brokerage Rating Price Target Upside/Downside on Report Date
5/20/2024 Rosenblatt Securities Buy ➝ Buy $1,400.00 ➝ $1,400.00 51.39%
5/20/2024 Barclays Overweight

➝ Overweight

$850.00 ➝ $1,100.00 18.95%
5/20/2024 Susquehanna Positive ➝ Positive $1,050.00 ➝ $1,100.00 18.95%
5/20/2024 Robert W Baird Outperform ➝ Outperform $1,050.00 ➝ $1,200.00 29.76%
5/20/2024 Stifel Nicolaus Buy ➝ Buy $910.00 ➝ $1,085.00 17.32%
5/17/2024 Oppenheimer Outperform ➝ Outperform $1,100.00 ➝ $1,100.00 16.58%
5/16/2024 Wedbush Outperform

➝ Outperform

$1,000.00 5.67%
5/14/2024 Wells Fargo & Company Overweight ➝ Overweight $970.00 ➝ $1,150.00 28.45%
5/13/2024 Jefferies Financial Group Buy ➝ Buy $780.00

➝ $1,200.00

33.51%
5/10/2024 HSBC Buy ➝ Buy $1,050.00 ➝ $1,350.00 49.75%

Source: MarketBeat

As you can see, the analysts’ forecasts are unrelentingly positive. Some notable takeaways from them include:

  1. Almost all brokerages have increased their price targets for Nvidia, indicating a bullish outlook on the stock’s potential performance.
  2. The majority of the actions taken by these brokerages either maintain or assign buy and outperform ratings.
  3. The reported upside/downside percentages are predominantly positive, with many brokerages projecting significant upside potential from the report dates’ price levels.
  4. The diversity of financial institutions reviewing Nvidia’s stock illustrates broad market interest.

Nvidia Stock Analysis

Contrarian readers might look at the above NVDA stock forecasts as the kind of one-way street groupthink situation that often accompanies a long-term top in any given market.

While that might ultimately prove true once expectations exceed reality, any would-be short-sellers should strongly consider the NVDA chart below.

Will this near-straight line upward continue or break soon?

  • The NVDA stock price closed at $949.50 as of May 22, 2024.
  • After an already impressive 2023, Nvidia’s year-to-date return is +97%.
  • In the last 12 months, NVDA stock price is up +209%.

Note that past performance never guarantees future results.

Nvidia (NVDA) Stock 1-Year Performance.
Nvidia (NVDA) Stock 1-Year Performance. Source: TradingView

The Latest Nvidia News & Key Drivers to Consider

Strong Q1 2024 Financial Results

Nvidia has performed exceptionally well over the past year, even better than any Nvidia stock predictions foretold.

It recently announced record quarterly revenue of $26 billion for the first quarter of 2024, which is up a staggering 262% from a year ago.

The GAAP earnings per diluted share came in at $5.98, representing an increase of 629% on the corresponding period last year.

In a statement, Nvidia’s founder and chief executive Jensen Huang said:

“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence.”

AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.

The Latest Nvidia News & Key Drivers to Consider
Source: Nvidia

Analysts were delighted with the results. Dan Ives, managing director of Wedbush, said on X (formerly Twitter):

“The Godfather of AI Jensen and Nvidia delivered another masterpiece quarter and guidance that should be hung in the Louvre. 1995 AI Gold Rush is just beginning as this tidal wave of spending hits the rest of the tech sector over the coming years being led by Jensen & Co.”

Ten-For-One Forward Stock Split

The company also announced a ten-for-one stock split of Nvidia’s issued common stock to make ownership more accessible to employees and investors.

“Each record holder of common stock as of the close of market on Thursday, June 6, 2024, will receive nine additional shares of common stock, to be distributed after the close of market on Friday, June 7, 2024,” it stated. “Trading is expected to commence on a split-adjusted basis at market open on Monday, June 10, 2024.”

Issuing more shares will automatically lower their price and make them appear less expensive, according to Dan Coatsworth, investment analyst at AJ Bell.

“Playing around with the share price by making technical adjustments is a psychological trick,” he said. “The value of the business won’t have actually changed and the value of someone’s investment is completely unaffected. It’s a classic technique that has been adopted by Apple and Tesla, among others, many times over the years.”

Positive Future Outlook

Nvidia expects revenue to be around $28 billion in the second quarter of fiscal 2025, plus or minus 2%.

The GAAP and non-GAAP gross margins should be 74.8% and 75.5%, respectively, while full-year gross margins are likely to be in the mid-70% range.

Jensen Huang declared that the company was poised for its next wave of growth.

“The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI,” he said. “Spectrum-X opens a brand-new market for us to bring large-scale AI to Ethernet-only data centers.”

The New Blackwell GPU and GB200 AI Chip

Nvidia recently unveiled a new GPU platform called Blackwell, marking a significant step forward in AI technology.

This graphics processing unit powers the NVIDIA GB200 Grace Blackwell superchip, designed to be much faster and more efficient than previous models. Blackwell is specifically engineered to handle complex AI computations, making it fit for various applications, from data centers to autonomous vehicles.

Tech Stocks and Fed Rate Cuts

When the Federal Reserve cuts, or plans to cut, interest rates, it tends to be good news for tech stocks and underpins bullish Nvidia stock predictions.

Likewise, no or delayed plans to cut rates, as has been the case so far, tend to weigh on the tech sector.

More Room to Run?

The sheer size of the move higher in NVDA stock, now the third largest in the world by market cap, should be factored into any NVDA stock forecast and investment decision.

While some people are cautious and thinking about when might be the right time to sell, others are excited and waiting for an opportune moment to buy in.

AI Stock Hype

The hype is partly because AI technology is advancing quickly and is used in more and more industries, creating big growth opportunities.

However, when there’s a lot of hype, stocks can become overvalued, meaning their prices go up higher than their actual financial performance justifies.

This can create risks for investors, as the stock might eventually drop to a more ‘reasonable’ price.

Nvidia Stock Forecast: Analyst Views

The analysts’ NVDA stock forecast remains bullish over the medium and long term.

Brian Colello, a strategist at Morningstar, has increased his fair value estimate on the stock to $1,050 from $910, as of May 22, 2024.

“The company remains the clear winner in the race to build out generative artificial intelligence capabilities,” he wrote. “We’re encouraged by management’s commentary that demand for its upcoming Blackwell products should exceed supply into calendar 2025, and we see no signs of AI demand slowing either.”

Dan Coatsworth, investment analyst at AJ Bell, said:

“Expectations were high for Nvidia in the run-up to its latest results, so to smash forecasts is a major achievement. That makes it six quarters in a row it has beaten the consensus earnings estimate and seven consecutive quarters for revenue.”

However, Coatsworth warned that Nvidia can’t get complacent.

“There are growing concerns that competition is heating up, particularly as rivals have seen the type of money it is earning and they want a slice of the pie,” he said. “Intel, AMD and lesser-known players such as Cerebras and Grow are all ones to watch in terms of names looking to capitalize on the hot AI trend in one way or another.”

Keith Bowman, equity analyst at interactive investor, believes the move to a next generation of chips could provide some operational disruption.

He told Techopedia:

“Its exposure to Asia and supply chain requirements are worth remembering. Sales of its top-spec products to China are now forbidden by the US government, power consumption is high for powerful chips raising environmental concerns, while the worries of many governments regarding the potential power of AI and its impact on human society continue to warrant deep thought.”

On the upside, demand for its datacentre-related products is going from record to record with no clear like-for-like rival yet obvious.

“Nvidia’s supply chain management has proved robust to date,” he added. “The potential for AI innovation including new groundbreaking medicines cannot be ignored, while its founder, Jensen Huang, with all his many years of experience, continues to lead the company.”

Technical Analyst and Market Researcher Constantinos Loizou offered some specific price targets based on an analysis of Nvidia’s price action:

“The medium and long term trend in the Nvidia stock remains bullish. As things stand, we expect additional ascent following the upward break of the critical resistance of $977, with an upside target at the psychological $1,000 and higher at $1,080. On the other hand, any downward break of $840 could open the doors for some short-term corrections likely toward $772, as it will complete a bearish reversal pattern.”

Nvidia Stock Predictions 2024, 2025 & Beyond

The NVDA stock is a ‘moderate buy,’ according to 42 analysts’ ratings compiled by MarketBeat as of May 23, 2024. Thirty-eight offer ‘buy’ recommendations, one sees it as a ‘strong buy,’ while just three view the stock as ‘hold.’

Their consensus 12-month NVDA stock price target is $1,002.18, which represents a potential 5.55% upside over the $949.50 closing price on May 22, 2024.

Meanwhile, the Nvidia stock forecast 2025 of algorithm-based WalletInvestor is much more bullish, putting the stock at $1,454.85 in 12 months’ time. 

However, its five-year NVDA stock forecast expects it to move even higher and reach $3,554.58 by May 2029. This would represent a 274% increase over the most recent $949.50 closing price.

Analysts and algorithm-based prediction platforms refrain from giving longer-term price targets. Therefore, Nvidia’s stock forecast for 2030 is not readily available.

Note that analysts’ and algorithm-based projections might prove to be wrong.

The Bottom Line: Should I Invest in Nvidia?

Nvidia has certainly become a darling of investors. Its stock price has risen by more than 200% over the past year and analysts believe it could go even higher.

The reason is clear: it’s a leading name in the fast-growing world of AI that’s going to become an increasingly important part of our lives.

However, that doesn’t mean it’s a guaranteed route to riches. This is a fiercely competitive industry and the pressure will be on Nvidia to continue beating expectations.

Even a slight stumble in future quarters could hit the share price hard. That’s why it’s important to do your research, consider the market context, and perhaps consult with a financial advisor to make an informed decision that aligns with your investment objectives.

Do your own research and always remember your investment decision depends on your attitude to risk, your expertise in the stock market, the spread of your portfolio, and how comfortable you feel about losing money.

The information in this article does not constitute investment advice and is meant for informational purposes only.

FAQs

Is Nvidia a good stock to buy?

Will Nvidia stock go up or down?

Should I invest in Nvidia stock?

Related Reading

Jasper Lawler
Financial expert
Jasper Lawler
Financial expert

Jasper cut his teeth on Wall Street as a stockbroker and honed his analytical skills with the City of London's top trading firms. Today, he applies his financial expertise to content creation as the founder of Trading Writers, a niche content marketing agency for the finance sector. Jasper's articles can be found on Techopedia, Seeking Alpha, UK Investor Magazine, Trade2win, Investing.com, FXStreet, Trading212.com, FlowBank.com, and Capital.com. His analysis has been quoted in prestigious publications such as the Financial Times, Bloomberg, Reuters, AFP, and City AM. Jasper's transition from stockbroker to content creator highlights his deep understanding of the financial markets…