Nvidia (NASDAQ: NVDA) is one of the few companies that can boast that its stock market performance in the last 12 and 6 months, as well as in the last 30 and 7 days, has been nothing short of stellar.
Still, having risen from about $48 at the start of the year to NVDA stock price today of $134.04, there are some concerns about whether there is much room left for a rally.
Indeed, Citi’s (NYSE: C) Atif Malik recently opined that there may not be much upside for Nvidia shares in 2024 and that the stock is likely to trade sideways in the fourth quarter as the gross margins land near 72% in the opening trimester of 2025.
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Citi expert reveals the next Nvidia stock rally
Though such an assessment may be disappointing for some NVDA investors, it is worth pointing out that Malik still sees the semiconductor giant as an exceptionally strong long-term investment.
Indeed, the analyst estimates that as the production and adoption of the new Blackwell chip continue, Nvidia is likely to start picking up speed and enter a renewed rally sometime in April 2025 – at the edge between Q1 and Q2 of the year.
He also assessed that the chipmaker has multiple factors at its side, including the already widespread adoption of its hardware and systems and the likely continuation of the AI boom. Atif Malik particularly emphasized AI’s potential to continue generating disruptive business models.
Finally, despite the overall bullish analysis and the reiterated ‘buy’ rating, Atif’s 12-month price target for Nvidia stock remains relatively tame at $150.
Put into perspective, if reached, the forecast would ensure NVDA shares have experienced an additional 11.91% price increase. The previous 52 weeks saw Nvidia stock rally 192.68%.
Why Nvidia stock is likely to see a massive upside in 2025
Citi analyst’s assessment of Nvidia falls in line with the broad Wall Street consensus for the company. Indeed, data retrieved from the stock analysis platform TradingView on October 9 reveals that the company is almost universally considered a ‘buy.’
Likewise, the average price target is mostly bullish and runs slightly below Malik’s forecast at $149.54.
Furthermore, the expert’s long-term argument falls in line with the plans disclosed by the chipmaker’s CEO, Jensen Huang. Specifically, on October 3, Huang not only revealed that the demand for the Blackwell chip is ‘insane’ but also that the semiconductor giant plans to make similar leaps in AI infrastructure every year going forward.
Though plans can change, and there is a danger things could go wrong for Nvidia – the AI boom might turn into a busted bubble, or its plans for annual AI revolutions could come to naught – the biggest argument against Malik’s prediction might be NVDA’s actual stock market performance.
Indeed, Nvidia shares rocketed 4.05% from $127.72 to $132.89 in the latest session alone, and if the company maintains even half of this pace, it will reach $150 in less than ten days.
