NVIDIA Corporation (NASDAQ: NVDA) posted a strong stock performance in the previous month and has exceeded Wall Street estimates with its guidance and Q3 results.
However, the chipmaker cautioned that sales in China, constituting a substantial portion of its high-margin data center business, are expected to “decline significantly” in the current quarter due to U.S. export restrictions on artificial intelligence (AI) chips to China. This was subsequently reflected in the NVDA stock price.
Nevertheless, Nvidia announced record-breaking revenue of $18.12 billion, marking a 34% increase from Q2 and an impressive 206% surge compared to the same period last year. Additionally, the company reported record Data Center revenue of $14.51 billion, reflecting a 41% rise from Q2 and an extraordinary 279% growth from the previous year.
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Following the earnings announcement, NVDA’s stock rebounded, closing at $487.16 per share on Wednesday, November 22, at the time of publication. Over the past 24 hours, it lost -2.46%, contrary to a 0.03% increase in value over the past five days.
Over the last month, this stock has been trading within a range of $403.26 to $504.09, and it’s currently close to the upper end of this range. With prices experiencing an increase recently, it’s advisable to initiate new long positions now.
Wall Street’s forecast for NVDA
Notably, Wall Street analysts’ average 12-month price objective for NVDA currently stands at $657.17, implying around 34.90% further upside compared to the current share price.
The stock has an average analyst rating of ‘Strong Buy,’ based on 36 ‘Buy’ recommendations, while only 3 advised ‘Hold,’ and none suggested a ‘Sell.’
Forecasts suggest an increased optimism from analysts, with predictions going as high as $1,100, which is more than double the current stock worth, and the lowest prediction still spells out an increase from its current price by almost 15%.
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