The stock price of Nvidia (NASDAQ: NVDA) continues to attract interest, especially after the recent sell-off, considering that equity is vital to the sustainability of the artificial intelligence (AI) boom.
Notably, after plunging below the $100 support zone amid recession fears across the United States, NVDA has made minor gains, closing at $104 on August 8. This reflects an increase of over 6% in the last 24 hours. Currently, reclaiming the $100 resistance remains a key target for investors.
Analysts take on Nvidia share price
Amid the anticipation surrounding Nvidia’s equity, analysts have shared insights on how the stock will likely perform in the coming months.
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In this regard, the analyst coverage provided by S&P Global revealed a robust consensus towards Nvidia’s future performance. Out of 50 analysts, 43 recommend buying the stock, 10 suggest it will outperform the market, and only four advise holding it.
Notably, none of the analysts recommend underperforming or selling the stock. This overwhelmingly positive outlook results in a consensus recommendation of “Buy,” with a consensus rating of 1.316.
Analysts’ price targets range from a low of $85.00 to a high of $200, with a standard deviation 24.23. This range indicates a significant potential upside for the stock, with a daily price target upside of 58.42%.
Nvidia primed for a breakout
Looking at the stock’s next price target, stock trading expert Peter DiCarlo, in an X post on August 9, suggested that Nvidia appears ready for a significant breakout, with projections indicating a possible surge to the $114-$118 range.
The analyst noted that this could result in a swift 8% gain for the stock. However, DiCarlo cautioned that NVDA is still operating under broader market biases, which could impact its trajectory.
“Quick +8% move but remember, we’re still trading under market bias. Once we re test market bias, I believe we reject one more time before finding a true bottom,” the expert said.
The current market outlook suggests that after an initial retest of this market bias, NVDA might face another rejection before stabilizing and finding a true bottom.
Additionally, the chipmaker’s current performance, bolstered by its innovative advancements in GPU technology and expansion into artificial intelligence and data centers, has positioned it well in the market.
Indeed, this bullish outlook will likely be realized if Nvidia meets the targets in its upcoming earnings report, which is slated for later this month. One key metric expected to attract interest is whether Nvidia reveals how its clients are profiting from its AI chips.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
