It is said that hindsight is 20/20, and its benefits are as painful to few as they are to investors who failed to acquire at least some shares of the semiconductor giant Nvidia (NASDAQ: NVDA) at the start of 2023.
In the 52-week period, the blue-chip microchip maker skyrocketed as much as 245%, meaning that any trader who put $1,000 on the line early in January could have cashed out approximately $3,500 on December 31.
The firm was, due to its dominant position in the semiconductor market, one of the major early beneficiaries of the artificial intelligence (AI) boom that started in earnest in late 2022 with the launch of OpenAI’s flagship platform – ChatGPT.
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While Nvidia’s future became uncertain for a brief moment in 2023 due to new export restrictions for high-tech goods bound for China, the company has since found a compromise solution and is, seemingly, set for a strong 2024.
Is Nvidia a good investment in 2024?
Since 2024 started, Nvidia has continued soaring, and its price chart – at one point appearing as if it is trying to reach for the skies – even caused a brief panic in early February as many investors felt it might have become a new tech bubble.
Despite the scare, Nvidia is yet to crash and is, in fact, up an impressive 50.75% since January 1. The last trading day, however, wasn’t positive for the company, and its stock closed 0.06% in the red – at $726.13.
On the other hand, the extended session trading appears to have erased the minor loss, as the firm is up 0.15% at the time of publication.
Following this performance, a January 1 investment in Nvidia would have already generated more than satisfactory returns, and $1,000 put into the firm at the start of the year would have, by February 19, turned into approximately $1,510.
Additionally, a $1,000 investment made already at the start of 2023 would have, by the 19th day of this February, risen to about $4,905.
Will NVDA match its 2023 success in 2024?
At press time, experts remain mostly bullish when it comes to Nvidia’s stock and its prospects in 2024. It retains a “strong buy” rating, with 37 analysts considering it a ‘buy’ and 3 being neutral, per the data compiled by TipRanks. Additionally, none of the 40 represented experts recommend selling the shares of the semiconductor giant.
The average price target of $746.91, however, constitutes a relatively small, 2.86% upside compared to the press time price and even the high forecast – $1,200 – hardly compares to the 250% growth observed in 2023.
Some fear that Nvidia might crash are also observable among the analysts as the lowest price target forecast a 22.87% drop to $560.
Could Nvidia crash in 2024?
Indeed, while Nvidia is almost certain to remain the biggest player in the microchip industry and has, at least for the time being, resolved the issues pertaining to its exports to China, certain risks remain.
To begin with, its future prospects are partially linked to the future of the AI boom, which – despite the high hopes expressed by major banks and other institutions – isn’t entirely guaranteed due to a string of copyright lawsuits and community complaints about the recent performance of platforms like ChatGPT.
Additionally, while they are still purchasing hardware from Nvidia, Chinese companies are allegedly not happy about receiving downgraded chips that are compliant with U.S.-imposed restrictions and are actively working to reduce their reliance on Western producers.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
