As Nvidia’s (NASDAQ: NVDA) stock price keeps climbing, one portfolio manager suggests that this upward trend is likely to be sustained in the months ahead, with a possible target approaching $300.
At the time of writing, Nvidia was trading at $133, reflecting daily increases of more than 4%. Recently, the tech giant has gained traction after surpassing the $120 resistance, resulting in a 14% surge over the past week and an impressive 177% increase in 2024.
The potential for further gains is underpinned by Nvidia’s robust fundamentals, strategic positioning in the market, and persistent demand for its offerings across significant sectors, particularly in artificial intelligence, according to Todd Gordon, founder of Inside Edge Capital, in an X post dated October 8.
Pathway for NVDA’s Stock to Reach $285
Gordon’s technical perspective suggests that NVDA is currently experiencing a wave-four triangle breakout within an Elliott Wave framework. This indicates a likelihood of upward momentum, positioning NVDA to reach $285 by 2025.
He projected earnings per share (EPS) of $2.84 for 2025, equating to 46 times anticipated earnings. Although this might seem costly, Gordon maintained that the current evaluation is warranted considering Nvidia’s growth path.
Gordon expresses particular optimism around the conservative revenue forecasts for the forthcoming four quarters. Analysts predict revenues of $32.9 billion, $36.5 billion, $39.5 billion, and $42.9 billion for the upcoming year. However, these estimates could be revised upward due to heightened demand in Blackwell, a critical segment of Nvidia’s operations. Gordon stated, “With Blackwell demand reportedly red hot, the risk for upward adjustment in those revenues is likely.”
Though Gordon recognized the potential for Nvidia to experience a correction, he emphasized that its status as a $3 trillion tech entity diminishes concerns over valuation when considering long-term growth opportunities.
Supporting this perspective, JPMorgan (NYSE: JPM) analyst Harlan Sur highlights the potential of Blackwell in 2025, noting its capability to support over 100 system configurations, and believes that Nvidia’s initiatives in AI and accelerated computing will be crucial for ongoing growth.
Nvidia’s Immediate Target of $150
According to recent price movements, for Nvidia to achieve another peak, surpassing the $150 threshold is the next goal of significant interest, as pointed out by Peter DiCarlo. He observed that “nothing is stopping” Nvidia from reaching $150 after breaking through the $130 level.
Further analysis from Wyckoff Analytics suggested that the chip maker is already entering a breakout phase after penetrating the $130 resistance. In an X post on October 9, the expert highlighted that this current breakout follows a period of consolidation, with the stock advancing past the descending trendline that hindered its upward progress since earlier highs in July.
This technical breakout is further supported by robust trading volume, indicating investor confidence and the potential for continued upward movement.
With Nvidia currently thriving, investors are looking forward to the arrival of the Blackwell chips, which CEO Jensen Huang describes as experiencing overwhelming demand.
However, it is important to note that the semiconductor’s continued rally is not guaranteed due to recent challenges, including delays in the release of Blackwell chips, regulatory issues, and competitive pressures. These factors previously caused NVDA to struggle in surpassing the $120 level.
In summary, Nvidia’s recent achievements have led to optimistic forecasts for ongoing growth. Despite possible hurdles, the prevailing view is that the launch of the Blackwell chips could mark a pivotal moment for the company.
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