The artificial intelligence (AI) boom has led the market’s narrative in 2023 and 2024, driving interest in startups and stocks. Nvidia (NASDAQ: NVDA) and Perplexity Online are two names that surged in this context, now put together by Finbold.
On October 12, we asked Perplexity AI for an NVDA price prediction based on up-to-date analysts’ insights on the web. Notably, Perplexity Online is capable of scanning the web in real time and is listed among OpenAI’s most feared competitors.
In response, Perplexity collected data from four distinct sources, resulting in a bullish and bearish price outlook on Nvidia stock. The sources used were The Motley Fool, YCharts, FinanceCharts, and Morningstar.
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While the bullish scenario puts NVDA’s price between $150 and $160, the bearish case targets the $100 to $110 range. The stock closed Friday at $134.80, up nearly 180% year-to-date, close to its all-time high, reached in 2024.
Nvidia stock price bullish case by Perplexity AI
Perplexity AI listed four fundamentals affecting its Nvidia stock price bullish prediction, eyeing up to $160 per share. In summary, it mentioned the AI sector growth, strong revenue results, partnerships and innovations, and big tech investment.
Indeed, Perplexity Online had previously revealed artificial intelligence stocks as the most popular investment for 2024, based on reputable sources. Adding up to these previous analyses, reports forecast the AI market to be worth $1.3 trillion in a decade. In 2023, the sector was worth $40 billion, illustrating the expected growth.
On the other fundamental aspects, Perplexity gathered more information, as follows.
“Strong Operational Performance: Nvidia’s second-quarter revenue jumped 122% year over year to $30 billion, driven by growing demand for data center GPUs. Partnerships and Innovations: Nvidia is partnering with companies like Foxconn to build and train AI-capable robots, and it has introduced “physical AI” concepts that could lead to new applications. Big Tech Investment: Large tech companies are willing to spend billions on Nvidia’s hardware to stay competitive in AI, even if immediate profitability is uncertain.”
– Perplexity Online AI
NVDA stock bearish scenario
Nevertheless, the company has seen some bearish signals, most of which we reported on Finbold.
For example, Nvidia stocks saw a relevant amount of insider selling pressures, with executives offloading shares during the price surge. The insiders have sold over $1.8 billion worth of stock, or almost 11 million shares, in 2024, marking the highest level since 2020.
Furthermore, Perplexity AI mentioned market skepticism, a high failure rate of AI projects, and strong competition as other factors influencing Nvidia’s stock price to the downside.
“Market Skepticism: Despite solid operational performance, Nvidia’s stock still trades below its all-time high of $136 per share reached on June 18, indicating market skepticism about its ability to maintain current momentum. High Failure Rate of AI Projects: Around 80% of AI projects fail, which could impact Nvidia’s long-term growth prospects. Competition: Other powerful chipmakers and tech titans are focused on in-house chip development, which could challenge Nvidia’s market position.”
– Perplexity Online AI
Besides looking at NVDA stock and the most popular investments, Finbold also used it to gauge a Bitcoin price prediction.
As things develop, different aspects will directly impact Nvidia’s performance in the following months and years. Tools like Perplexity Online help gather valuable insights but should not be considered in isolation.
