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Nvidia (NVDA) stock analysis: Buy, Sell, or Hold in 2024?

Nvidia (NVDA) stock analysis: Buy, Sell, or Hold in 2024?

The semiconductor giant Nvidia (NASDAQ: NVDA) is one the biggest companies that have, in recent months, been consistently impressing on all fronts. 

On the business side, the company has been doing very well and continues to manufacture some of the most technologically advanced chips – including new high-end models intended for use in the artificial intelligence (AI) sector.

The firm’s stock market performance in the last 52 weeks has also been staggering, and its shares rose more than 214.18% in the timeframe. The company has also been going strong since January 1 and is up 15.46% in the first weeks of 2024.

Nvidia’s shares are worth $556.68 at the time of publication, having continued their rise in the last 24 hours, adding another 1.75%.

NVDA YTD chart. Source: Finbold

NVDA stock even helped certain market-minded politicians significantly boost their already major 2023 returns.

Still, as with most things in life, New Year 2024 is full of promise, but also few guarantees that it will be smooth sailing from start to finish, and deciding whether or not to invest in Nvidia requires careful analysis of many factors.

Is buying NVDA a good idea in 2024?

At the onset of 2024, Nvidia’s stock appears to be one of the most obvious winning buys for any savvy investor. 

The company is an important player in the microchip industry and has – along with other infrastructure providers such as Amazon (NASDAQ: AMZN) through its AWS cloud service – been a major beneficiary of the opening stages of the AI boom.

Nvidia is also set to start shipping its most advanced microchip to date – the H200 – and has, at least at surface level, successfully navigated the challenges stemming from new restrictions on exports to China.

Despite its strong 2023 performance, the semiconductor giant was even considered one of the cheapest big tech stocks in mid-December.

Challenges ahead for NVDA stock?

Despite all of these positive factors, certain challenges persist. The first of these comes in the form of the reported reluctance of Chinese companies to settle for microchips modified to comply with the new restrictions.

Furthermore, certain long-standing customers of Nvidia, such as Baidu (NASDAQ: BIDU) have been taking steps throughout 2023 to reduce their dependence on the American company.

Additionally, the current geopolitical situation is permeated by instability, and certain ongoing events – such as the partial blockade of the Red Sea – present a danger to global supply chains.

Finally, the most recent inflation figures have somewhat dampened hopes for economic recovery and a swift decrease in interest rates – and indeed, certain major financial institutions such as JPMorgan Chase (NYSE: JPM) believe investors are likely to be disappointed in 2024.

Do Wall Street analysts recommend buying NVDA?

All in all, despite the continued existence of some uncertainties, the 53 analysts taken into account by TradingView are almost unanimous in recommending Nvida’s shares to investors and traders.

As many as 41 believe the tech company to be a “strong buy” and another 8 mark it as a “buy.” Only 4 analysts believe Nvidia is a “hold,” and none of the 53 recommend selling the stock.

NVDA analyst recommendations. Source: TradingView

The 12-month price targets for the company are also largely bullish. The average forecast predicts a 19.59% upside, estimating that NVDA will enter 2025 worth approximately $666.

The most optimistic analysts are even more bullish and see the shares of the chip-maker reaching as high as $1,100 before the year is out, while the more cautious among them see a downside of 26.26% and a decline to $410.

NVDA technicals. SourceL TradingView

When it comes to technical analysis, TradingView’s 1-month gauges also paint a positive picture and generally rank Nvidia as a “strong buy.”

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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.

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