The semiconductor giant Nvidia (NASDAQ: NVDA) offered a very strong performance throughout 2023, with its stock rising more than 200% in the 52-week period.
This success was largely driven by the artificial intelligence (AI) boom, as well as technological developments such as the unveiling of a new high-end chip – the H200.
The company, however, was also faced with a potentially major setback in late October as the U.S. government announced a new round of export restrictions with said new rules jeopardized approximately $5 billion worth of China-bound orders.
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Their effects were also compounded by the efforts of local companies to reduce their dependence on American manufacturers, as evidenced by large orders from Huawei made by Baidu (NASDAQ: BIDU).
Despite this, Nvidia was in talks with the U.S. government on ways to continue exports to China while abiding by the new restriction by late 2023. The result of these talks came in the form of new chip models designed specifically to comply with the new rules.
Nvidia is now expected to launch its highest-end modified chip – the H20 – in the second quarter of 2024, according to a January 8 Reuters report. Initial production figures, however, are expected to be relatively low, with the company striving to meet the demands of only its largest clients.
The export plans are also reportedly hampered by an unwillingness on the Chinese side to settle for downgraded chips, as well as by certain difficulties with integrating them into other products.
Analysts set NVDA stock price target
Taking into account Nvidia’s 2023 successes – on the business side as well as the stock market – and the likely continuation of major deliveries to China, it perhaps isn’t surprising that Wall Street analysts generally consider its stock a “strong buy.”
Of the 35 analysts analyzed by TipRanks, as many as 31 consider NVDA a “buy,” and 4 rank it as a “hold.” Overall, the average 12-month price target for the company stands at $660.77 – a 32.73% upside from the current price – with some going as high as $1,100.
The 54 analysts taken into account by TradingView agree with the assessment. A vast majority – 42 – consider Nvidia a “strong buy.” Another 8 mark it as a buy, only 4 believe NVDA is a “hold,” and none believe that selling the chip maker’s shares is a good idea.
NVDA price analysis
Commanding a market cap of $1.23 trillion, Nvidia is the biggest player in the semiconductor industry. Throughout 2023, the company has only grown larger and is up – in the last 52 weeks – as much as 219.37%.
Its performance in the last 30 days was also strong, and the firm’s shares are 5.06% in the green.
Finally, despite suffering from a slight decline in the first week since the new year started. NVDA opened strongly on Monday and is up 2.17% at the time of publication, with a price of $501.61.
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