Thanks to a mix of concerns from its exceptionally high price-to-earnings (P/E) ratio and the broader stock market slump arising primarily from the weaker-than-expected July employment report, the future of Nvidia (NASDAQ: NVDA) shares appears less certain than at almost any point since the start of 2024.
One analyst, Wedbush’s Dan Ives, believes that the highly anticipated earnings report – scheduled for August 28 – will prove not only an exciting event but also a ‘drop the mic moment’ for Nvidia.
Indeed, should the semiconductor giant meet – and particularly if it exceeds – expectations, it is likely that the stock’s recent struggles in the market, which even saw it drop below $100 in August for the first time since May- once the June stock split is taken into account – will end.
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Looking at Nvidia historic performance, it is likely that it will indeed impress with the upcoming report as it has managed to beat earnings-per-share (EPS) estimates in four of the four previous quarters. Additionally, should it meet the forecasts of an EPS $0.59 it will demonstrate its growth is continuing decisively, given that Nvidia reported $0.25 in the same quarter one year earlier.
Despite the blue-chip chipmaker’s recent stock market decline, Dan Ives is far from the only expert bullish about Nvidia’s future. NVDA shares boast a ‘strong buy’ rating on the stock analysis platform TradingView with as many as 47 out of the 61 ratings assigned in the last three months ranking it as such.
Furthermore, 9 analysts believe the semiconductor giant to be a ‘buy,’ only 5 remain ‘neutral,’ and none believe that selling is the right move. On average, NVDA stock is expected to rise 33.45% to reach $139.79 in the coming 12 months.
Nvidia stock price chart
Finally, despite Nvidia shares being in an apparent freefall in the last 30 days, having declined as much as 17.67% within the time frame, it is worth pointing out that the correction – driven both by fears the stock may be overvalued and the broader stock market slump – has hardly put a dent in the company’s year-to-date (YTD) rise which amounts to, in the premarket on Monday, August 12, 119.71%.
The rise becomes even more impressive once Nvidia’s stock price chart is zoomed out further, given that it has risen 141.89% in the last 12 months and went from about $14 per share at the start of the artificial intelligence (AI) boom in late 2022 to $105.79 at press time.
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