The previous period for Nvidia (NASDAQ: NVDA) stock has been especially volatile, as the recent rotation of capital from the tech sector has withdrawn gains from the chipmaker giant.
Over the last 30 days, NVDA stock lost 0.15% of its value, while the previous five trading sessions shredded the value by 9.76%.
The losses extended in the latest trading session on July 19, with NVDA shares retracing by 2.61%; however, the pre-market gains of 2.04% at the time of writing could reverse this trend.
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And the pre-market gains aren’t the only positive development for this semiconductor stock, as Citi analyst Atif Malik believes that the next 30 days will be filled with positive catalysts.
The next 30 days could bring significant gains to NVDA stock
Namely, in his most recent note, Malik has reiterated a “buy” rating and a $150 price target on Nvidia shares, highlighting three key catalysts ahead of the Special Interest Group on Computer Graphics and Interactive Techniques (SIGGRAPH) 2024 conference.
First, CEO Jensen Huang and Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg are expected to discuss the future of artificial intelligence (AI) and potentially announce the highly anticipated standalone Arm-Based Grace CPU for servers. Potential announcements could significantly impact chipmaker’s market position and technology offerings.
Second, the CEOs’ conversation is anticipated to provide insights into how Nvidia’s end customers generate returns on investment (ROI), as understanding the profitability and ROI of AI investments can influence confidence and decision-making regarding NVIDIA’s stock.
Third, the Citi analyst expects the conference to highlight an accelerating demand trend for AI that shows no signs of slowing down.
This positive outlook, coupled with the recent 13% price/earnings discount on NVIDIA’s stock due to geopolitical concerns, presents a buying opportunity. The analyst believes these factors position NVDA stock favorably in the market, reinforcing his optimistic outlook.
Nvidia reportedly started the development of chips for China market
Another positive catalyst, if everything goes according to plan, for Nvidia could be the entry of its chips into the second-largest chip market in the world, China.
Nvidia is developing a version of its new flagship AI chips for the Chinese market that will comply with current U.S. export controls, according to a Reuters report on July 22.
The company plans to collaborate with Inspur, one of its major distributor partners in China, to launch and distribute the chip, tentatively named the “B20.” Shipments of the “B20” are expected to begin in the second quarter of 2025.
However, it remains uncertain whether U.S. authorities will permit this initiative or intensify efforts to restrict the supply of advanced chips to China.
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