Nvidia (NASDAQ:NVDA) beat analysts’ expectations for Q3 FY24, thanks to its dominance in the artificial intelligence (AI) space. The blockbuster results prompted Wall Street to reconsider the chipmaker’s huge growth potential. Following the Q3 announcement, TD Cowen’s Matt Ramsey and Mizuho Securities’ Vijay Rakesh, two 5-star analysts who rate NVDA as a “buy,” rated NVDA as a “top pick.” ” he praised.
Analysts predict big rise in NVDA stock
After the results, analyst Rakesh revised upward his model forecast for NVDA and raised his price target from $590 to $625 (up 25.1%). A key driver of his optimism is the outlook for NVIDIA, which beat expectations in the January quarter on the back of AI momentum and an expected recovery in the gaming industry.
Analyst Ramsey, on the other hand, is a bit more optimistic about NVDA’s growth. He kept his price target unchanged at $700 (up 40.2%), citing incredibly strong earnings and guidance. Ramsay has full confidence in Nvidia’s wide moat, which will help the company continue to dominate in his AI space.
Investors worried about Chinese regulations
Notably, NVDA stock did not react as enthusiastically to the sharply deteriorating quarterly results, which may have something to do with investor concerns about the company’s growth prospects. . Still, analysts believe the company’s data center revenues are well-positioned to take advantage of surging demand for AI hardware and software products.
Despite US restrictions on chip exports to China, management maintains its view that NVIDIA’s revenue and profits will increase significantly in fiscal 2025. NVIDIA is also already working on manufacturing chips that comply with U.S. standards for export to China and the Middle East. Additionally, the semiconductor giant is seeking government approval to sell its high-end products to both countries.
Is Nvidia stock expected to grow?
Nvidia has a consensus rating of 37 buys to 1 hold on TipRanks as a Strong Buy. Nvidia’s average price prediction is $644.07, implying a potential upside of nearly 29% from current levels. Based on these, Nvidia earns a “Strong Buy” consensus rating on his TipRanks. Nvidia’s average price prediction is $644.07, implying a potential upside of nearly 29% from current levels. Year-to-date, NVDA stock has soared 249%.
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end of thought
Nvidia has once again proven its dominance in the AI field. Two of his five-star analysts reiterated that there is nothing to stop Nvidia from continuing to capture the largest market share (about 95%) in the generative AI space. Given their optimism and management’s obvious confidence in their growth prospects, it’s safe to say that NVIDIA is on track for strong performance in the coming quarters.
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