In the first 10 days of 2024, the stock of the semiconductor giant Nvidia (NASDAQ: NVDA) has been shooting up. The price movements come after a year of strong performance – both on the business and the stock market side – and in the climate of continued industry dominance, including for the chips for the booming artificial intelligence (AI) sector.
Since New Year’s Day, the shares of Nvidia are up 7.90% and stood at, at the market close on Tuesday, January 9, at $531.40, having risen 1.70% in a day. The company’s stock continued its upward trajectory in the extended trading and is, at press time, 0.97% in the green.
This means that between January 1 and January 10, Nvidia’s market cap rose by nearly $100 billion – from $1.223 trillion up to $1.312 trillion – making it the world’s sixth largest company, ranking right between Amazon (NASDAQ: AMZN) and Meta (NASDAQ: META).
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Wall Street forecasts Nvidia’s 2024 performance
While Nvidia grew significantly throughout 2023, analysts are also expecting a strong showing from the chip maker in 2024. Between its leading position in supplying the AI sector and an agreement with the U.S. government to continue exports to China, the company is well positioned to rise even further.
The average 12-month price target for Nvidia’s stock stands at $662.39 – a 24.65% upside compared to the price at press time. The firm is considered a “strong buy” with 32 out of the 36 analysts considered by the stock analysis platform TipRanks marking it as such.
The 54 analysts taken into account by TradingView concur that Nvida’s shares are a strong buy, with as many as 42 explicitly considering it as such. None of the represented analysts ranked the company’s stock as a “sell” or a “strong sell.”
The highest 12-month price for the semiconductor giant stands as high as $1,100, while the lowest foresees a downside and is set at $410.
A possible argument for Nvidia not having such a strong 2024 comes in the form of reported issues with the Chinese market. Allegedly, Chinese companies are somewhat reluctant to accept the modified chips that comply with new export restrictions, and some went on to repurpose gaming chips for uses in AI technology.
Additionally, while the East Asian country has yet to produce chips as advanced as those made by Nvidia, Huawei has been improving its designs, and Baidu (NASDAQ: BIDU) made an effort to slightly reduce its dependence on the American supplier already last year.
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