Nvidia Stock: Can Its Stellar Returns Continue?

Nvidia Stock: Can Its Stellar Returns Continue?

The ongoing digital transformation and strong product demand led to a significant rise in Nvidia ( NVDA) stock, which more than doubled in one year. Further, its ability to innovate and stay ahead of competition bodes well for growth. 

Citing the rollout of its next-gen Hopper computing architecture and Hooper-based H100 chipset, J.P. Morgan analyst Harlan Sur stated that Nvidia remains “1-2 steps ahead of its competitors.” Sur noted that the next-gen H100 chipset shows “significant performance gains” over its predecessor A100 chip.

The analyst added, “NVIDIA is well-positioned for AI and high-performance computing applications due to its new hardware technology, and supported by strong ecosystem development and new software infrastructure.”

Sur expects Nvidia to benefit from the ongoing strength in the data center and PC gaming segments. Further, the growing use cases of its chips are positive. For instance, the analyst is upbeat about growth opportunities in the automotive and enterprise segments. Sur has a Buy recommendation on NVDA stock and sees strong upside potential. 

While Sur is upbeat about Nvidia’s next-gen data center platform, Rajvindra Gill of Needham is “excited about the bourgeoning software opportunity for NVIDIA.” Gill added that Nvidia “sports one of the strongest financial profiles” in the semiconductor space and recommends a Buy on NVDA stock. 

Wall Street’s Take

 

Along with Sur and Gill, most Wall Street analysts are bullish on Nvidia stock. It has received 21 Buys and five Hold recommendations for a Strong Buy consensus rating. Notably, the average Nvidia price target of $350.22 implies 26.4% upside potential from current levels.

Bottom Line

Nvidia could continue to deliver strong financials on the back of the strength in the data center and gaming division. Further, product launches and software opportunities, including early traction in its Omniverse enterprise software, bode well for growth. 

Further data shows that retail investors and hedge funds are accumulating NVDA stock.

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