Chip Giant (NASDAQ:NVDA) is preparing to release its fiscal 2024 third quarter financial results on November 21st. This begs the question, “Is NVIDIA stock set to rise further following its quarterly results?” No one can predict it with absolute certainty, but analysts are optimistic about third-quarter earnings. Street believes NVDA has exceeded already high expectations and the stock could rise further.
With this background, let’s understand what factors could push NVDA’s stock price higher.
Factors supporting NVDA stock price
The rise in Nvidia stock is driven by huge demand for AI (artificial intelligence), and NVDA has a dominant position in this space. As a result, investors will be keeping an eye on NVDA’s management to see if his AI market and demand can grow rapidly and provide a multi-year growth opportunity. In this regard, Wolfe Research analyst Chris Caso said there is already evidence of sustained high demand for his AI products at NVDA.
Caso cited Nvidia’s announcement of the H200 GPU at the SC23 event and said that Nvidia traditionally does not update previous data center GPUs. He interprets this announcement as further evidence that NVDA is accelerating its product development cycles in response to his growing AI market and evolving performance requirements. The same analyst assigned a “buy” rating to Nvidia stock on November 13th. Additionally, his price target is $630, which could mean an upside of about 25% from current levels.
In addition to strong AI-driven demand, Nvidia is expected to beat analysts’ third-quarter forecasts and provide better-than-expected guidance. Susquehanna analyst Christopher Rolland expects significantly stronger third-quarter results and future guidance from NVIDIA. Rowland expressed optimism about NVDA stock, raising his price target from $600 to $625 on November 16th. He said the company is aggressively increasing supply to meet rising demand. Additionally, he emphasized that NVIDIA expects this growth to continue each quarter throughout the year.
What are your predictions for Nvidia stock?
The consensus rating for NVIDIA stock is a Strong Buy, with 37 out of 38 analysts recommending it as a Buy. Additionally, NVDA’s average price target of $644.07 implies a potential upside of 27.77% from current levels over the next 12 months.
conclusion
Nvidia’s leadership in AI, improved supply chain and product launches, and strength in data center and gaming provide a solid foundation for future growth. This is reflected in analysts’ optimistic outlook for NVDA stock.
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