Nvidia’s (NASDAQ: NVDA) latest quarterly report caused a significant stock market splash. Investors were, at least in the beginning, far from impressed despite the company beating earnings and revenue forecasts.
Though the situation has stabilized, and NVDA shares are back in the green in the November 20 to November 21 pre-market, having risen 1.69% from their latest closing price of $145.89 to their press time price of $148.35, one prominent market expert estimates a greater correction is ahead.
Specifically, Ali Martinez, an analyst best known for issuing directional warnings for the cryptocurrency market, replied to one of Jim Cramer’s baffled X posts in the wake of the post-earnings drop with a dire price target: $114.
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What is behind the $114 Nvidia stock price target
The expert explained that TD Sequential – a tool they frequently and successfully use when analyzing digital assets – has flashed a sell signal on Nvidia stock’s weekly chart.
TD Sequential is a technical analysis (TA) tool intended to gauge whether the current trend will persist or experience a reversal, based on historical performance of the asset. It was first described in the 1990s by analyst Tom DeMark.
Interestingly, though he refrained from providing a specific price target, Tom DeMark himself recently revealed he expects NVDA shares to enter a correction soon after they enter their next high.
Additionally, the famed technical analyst stated that this high is likely to come shortly after the earnings report is published, but he left the question of whether the downtrend will be a modest correction or the harbinger of a greater collapse.
Still, the fact that DeMark simultaneously explained that major indices like the S&P 500 and the Dow Jones Industrial Average (DJIA) are also likely to soon move lower might signal a greater chance of greater stock market turbulence ahead.
Wall Street analysts revise Nvidia stock price target after strong earnings
Whatever the next move may be, Ali Martinez is relatively alone in forecasting a strong downward move.
Jim Cramer, after working through his amazement at the immediate selling pressure in the wake of the report, opined that the more recent upward momentum is driven by ‘real buyers with real firepower now flying in to take advantage of the drop’ caused by traders with ‘an ill-advised agenda.’
Wedbush’s Dan Ives was equally impressed with Nvidia’s quarterly performance and described the figures in terms like ‘blockbuster’ and ‘eye-popping.’
Indeed, the optimistic view appears nearly universal as multiple institutions have revised their NVDA stock price targets, and most of the reassessments were positive.
Wells Fargo (NYSE: WFC) raised the forecast from $165 to $185, Barclays from $145 to $160, Mizuho from $165 to $175, Rosenblatt Securities from $200 to $225, and Goldman Sachs (NYSE: GS) from $150 to $165, just to name a few.
It is worth remembering that if Nvidia’s stock price exceeds $162.75, it will become the world’s first $4 trillion company.
Still, not all revisions were entirely positive, demonstrating a persistent uncertainty about whether the semiconductor giant is already overvalued at a market cap above $3.5 trillion.
Deutsche Bank reiterated its ‘neutral’ rating despite the strong earnings report and continued forecasting a downside in the coming 12 months, though not longer to $115 but to $140 per share.
Featured image via Shutterstock
