The stock price of semiconductor giant Nvidia (NASDAQ: NVDA) shows no signs of slowing down as it continues to benefit from its foray into the artificial intelligence (AI) scene.
This growth trajectory has been predominantly bullish throughout 2024, reflecting strong investor confidence and robust market performance. However, leading economist and financial author Harry Dent has issued a cautionary note, forecasting a potential downturn that could impact this upward trend.
According to Dent, Nvidia will likely be a victim of a general market crash, which he terms the “bubble of all bubbles” that will dwarf the 2008 financial crisis, he said in a recent interview with Fox Business.
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Dent elaborated on his prediction, reflecting on the recent performance of leading stocks like Nvidia while focusing on historical patterns and the longevity of the current market boom. In this line, he warned that NVDA stock will likely record a 98% crash.
“This bubble has been going for fourteen years. Instead of most bubbles [going] five to six, it’s been stretched higher, longer. So you’d have to expect a bigger crash than we got in 2008 to’ 09.”
The forecaster added:
“I think we’re going to see the S&P go down 86% from the top and the Nasdaq 92%. A hero stock like Nvidia, as good as it is, and it is a great company, [goes] down 98%. Boy, this is over,” he said.
Nvidia stock fundamentals
Indeed, the economist’s projection contradicts the majority consensus in the market regarding Nvidia’s future. It is worth noting that Nvidia has built optimism by implementing a 10-for-1 stock split. Being a hot stock, this move makes whole-share ownership more feasible for many everyday investors.
Despite growing competition in the semiconductor sector, Nvidia has outperformed its rivals multiple times, and there is no compelling reason to believe this dynamic will change soon.
Notably, the company continues to dominate the chip market, translating into triple-digit earnings growth in recent quarters. Revenues will likely soar as general AI growth is still in its early days.
Additionally, Nvidia aims to stay ahead of the competition by focusing on innovation, having pledged to increase the power of its GPUs annually.
Wall Street analysts Nvidia stock outlook
Elsewhere, 40 Wall Street analysts at TipRanks have maintained a bullish stance on Nvidia, projecting sustained growth over the next 12 months.
The experts have set an average price target of $127.73, indicating a modest 1.63% increase from the recent price. The analysts’ forecasts vary significantly, with the highest price target at $150 and the lowest at $90.
By the time of reporting, Nvidia stock price today was trading at $128.73, gaining almost 2.5% within 24 hours. On a year-to-date basis, the equity is up 167%.
Besides this bullish outlook, Nvidia could face bearish sentiments due to concerns about market saturation, increasing competition, or broader economic challenges that might impact its revenue streams.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
