Mizuho Thinks Nvidia Stock Will Hit $170 in Q1. Should You Buy It Now?
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Most people on Wall Street agree that Nvidia (NVDA) is the winner of the artificial intelligence (AI) boom over the last two years. The company is well known for producing GPUs that support everything from video gaming to AI data centers. It is now one of the most valuable companies in the world, commanding a market capitalization of $3.2 trillion.
NVDA stock is up 730% over the past two years, and up 170% in the year to date. Shares are now down from their 52-week high above $152, potentially creating a nice entry point for investors.
Mizuho Analysts Are Optimistic About Nvidia Stock
Mizuho analyst Jordan Klein has expressed optimism over Nvidia stock and predicts that the company will have positives to share with investors during CES in January.
Additionally, Klein believes that Nvidia could unveil new products at the GPU Technology Conference in March that would take shares to the $160 to $170 level. This represents upside potential of more 30% at the peak of the range. Solid financials and a leadership position within the AI chip market also support the high price target.
Third-Quarter Results
The AI specialist reported its third-quarter results on Nov. 20. It posted revenue of $35.08 billion, representing a growth of 93.6% year-over-year and easily surpassing analysts' $33.13 billion estimate. Revenue from its data center business reached a record high of $30.8 billion.
On the earnings front, it reported an adjusted total of $0.81 per share, again beating estimates of $0.75 per share, while its adjusted operating income came to $23.28 billion with a margin of 66.3%.
Despite the solid results, the stock slid 1% due to weak guidance for the ongoing quarter where it expects around $37.5 billion in revenue, plus or minus 2%, while analysts expect $37.09 billion.
What Do Analysts Think About Nvidia?
Overall, analysts support this AI stock with a consensus “Strong Buy” rating and a mean price target of $175.55. This target suggests upside potential of 31%.
The stock is covered by 43 analysts and currently has 36 “Strong Buy” ratings, 3 “Moderate Buy” ratings, and 4 “Hold” ratings.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.