Following a sharp slide from its mid-July record highs, Nvidia (NVDA) seems to be coming back into favor ahead of its quarterly release Wednesday evening. It’s hard to even fathom the words “back in favor,” considering the stock has more than tripled in 2023. But before last Monday’s 7% gain and this Monday’s more than 8% advance, shares of Nvidia had dropped nearly 14% from their all-time high close of $474.94 each on July 18 to their most recent closing low of $408.55 on Aug. 11. NVDA 3M mountain Nvidia 3-month performance Nvidia’s recent resurgence raises the already-high bar going into Wednesday’s earnings release as the semiconductor giant fights to keep up with the surging demand for its market-leading chips for artificial intelligence applications. Investors who recently bought Nvidia armed with sky-high expectations for the company’s fiscal 2024 second-quarter print could choose to flee, no matter what the company reports and guides. Considering that a key variable to Nvidia’s results is something outside of its hands — the supply of its AI chips — it’s best to view the stock on a multiyear horizon, not quarter-to-quarter. “The analysts are completely in charge. They just keep taking it higher, regardless,” Jim Cramer said Monday. Besides Apple (AAPL), Nvidia is the only other Club stock to get Jim’s “own it, don’t trade it” designation. “I’m not saying sell,” he stressed. “I just question the valuation being created by this endless level of enthusiasm.” An avalanche of research analysts have recently raised their stock price projections and tweaked their financial estimates for Nvidia. In the past 24 hours alone, HSBC hiked its Nvidia price target by 30% to $780 per share, among the highest on Wall Street, implying more than 66% upside from Monday’s closing price of $469.67 per share. Baird named Nvidia a top pick and said it sees the stock reaching $570 per share over the next 12 months, up from its prior $475 objective. KeyBanc’s new price target…
Read the full article here
Leave a Reply