Starting with the release of ChatGPT in late 2022 and the beginning of the ongoing artificial intelligence (AI) boom, the semiconductor giant Nvidia (NASDAQ: NVDA) started a journey that saw its market capitalization surge more than $2.5 trillion and its stock price of more than 1,000%.
Such rocketing has had a dual effect on many investors, triggering the so-called fear of missing out (FOMO) and concerns about whether such a stratospheric rise precedes little other than a dizzying fall.
By mid-July, the question ‘is it too late to buy Nvidia stock?’ is as relevant as ever, given the semiconductor giant’s shares’ 169.86% rise to $129.98 in the year-to-date (YTD) chart and the upside expected in the months following the June 10-for-1 stock split.
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Is Nvidia stock a buy?
The answer to the question is whether Nvidia stock is a buy or a sell, at least among the stock market analysts, appears overwhelmingly clear.
Indeed, out of the 63 experts represented on the stock analysis network TradingView, as many as 48 consider NVDA shares a ‘strong buy’ and 8 a ‘buy.’ The remaining 7 are ‘neutral,’ and there are no ‘sell’ or ‘strong sell’ recommendations.
Despite this decisive bullishness, the wider uncertainty of just how unlimited the upside is for the blue-chip chipmaker has crept into the price target.
While the overall 12-month forecast represents an upside from the press time price, the fact it is no greater than approximately 1% highlights both the speed of Nvidia’s stock market rise and analysts’ unwillingness to predict future performance akin to what was seen the last 18 months of trading.
Nvidia’s buying activity hints at imminent correction
Elsewhere, buying activity analysis hints that Nvidia’s outlook may not be as positive as experts have assessed. Indeed, there has been an observable decline in buying pressure in recent weeks, hinting that the long rally is nearing its end.
Such a conclusion is further corroborated by the observation that NVDA shares have recently formed a small-range shooting star pattern on their weekly candle—a common bearish sign that led to a substantial but not terminal downturn for Nvidia’s stock in late 2023.
Why NVDA stock’s future price may not depend on Nvidia
Ultimately, the question of whether Nvidia is a good buy is likely to be closely tied to the AI boom itself.
Should the bullish attitudes toward the technology prove correct, NVDA shares will likely have a significant upside before they plateau – particularly if the next stage of artificial intelligence proves as transformative as the Internet or the smartphone.
Such a notion is further reinforced by the fact that even the more bearish signals hint more toward a temporary correction than a proper downfall.
On the other hand, some experts believe much of the boom is driven by vaporware, and multiple prominent market analysts believe there exists a massive bubble – a massive bubble that could see Nvidia collapse as much as 98%.
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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.
