As Nvidia’s (NASDAQ: NVDA) share price continues to capture attention due to its impact on the wider technology industry, OpenAI’s most recent artificial intelligence (AI) application has provided predictions on how the stock might perform by the end of 2024.
This anticipated price forecast coincides with a timeframe in which Nvidia is witnessing short-term positive sentiment, primarily fueled by the organization’s recognition of substantial demand for its semiconductors, as reported by Finbold on September 12.
At the time of this report, the semiconductor manufacturer had a valuation of $119, showing an increase of nearly 2% in the last 24 hours. The company’s exploitation of the AI surge has propelled NVDA to climb almost 150% year-to-date (YTD).
Indeed, Nvidia’s remarkable share increase has partly enabled the company to continually reward its shareholders through dividends.
OpenAI o1 NVDA share forecast
For its end-of-2024 stock price projection, Finbold utilized OpenAI’s o1 tool, designed for complex queries, to assess elements likely to impact NVDA in the forthcoming months.
According to the AI tool, Nvidia’s share path will keep being shaped by the company’s involvement in serving the AI and machine learning sectors. It indicated that as these industries expand, Nvidia stands to gain.
Furthermore, the firm’s role in facilitating cloud computing and big data analytics heightens the need for robust data center solutions, where Nvidia has a strong foothold. The tool also underscored the tech company’s influence on the gaming sector via its GPUs, which will probably bolster the share price.
The OpenAI tool also stressed the importance of observing competitors in the semiconductor industry. Specifically, it highlighted that Nvidia must stay technologically ahead of rivals like Advanced Micro Devices (NASDAQ: AMD) through innovation to uphold its market position.
Additionally, the tool emphasized the necessity for steady revenue and earnings growth, which directly affects investor trust. Recently, Nvidia has showcased substantial revenue growth, reporting $30.04 billion—a 122% rise year-over-year for Q2 2024. For Q3 2024, the company aims for approximately $32.50 billion in revenue with an anticipated gross margin of 75%.
On the downside, the AI model cautioned that economic factors such as a potential recession or supply chain challenges could impact the stock.
Although the AI tool did not specify Nvidia’s exact price at the conclusion of 2024, it mentioned that the stock could trade higher than the current $119 if the company sustains its market share.
Nvidia technical analysis
Meanwhile, stock trading analyst Peter DiCarlo stated in a September 13 X post that Nvidia has been adhering to a pattern of ascending lows, signaling an overall upward trend. However, it continues to produce descending highs, which have hindered a definitive breakout. DiCarlo proposed that breaking this trend would necessitate the stock to exceed the $130 threshold, potentially sparking a more considerable rally.
“I perceive $120 as the ceiling before we witness a re-test and possible rejection,” he remarked.
In the short term, the analyst predicted that Nvidia could rise to the $120–$124 range, a zone linked with institutional selling. Historically, this level has instigated sell-offs, so if the pattern persists, NVDA might experience another retreat before regaining its upward momentum.
He anticipated a possible drop to around $110–$108 by the end of September, with a breakout likely by year-end. Nvidia could finish between $140 and $150, depending on a solid market catalyst.
The overall positive sentiment for Nvidia is also backed by Bernstein analyst Stacy Rasgon, who, on September 12, upheld an “outperform” rating with a target price of $155.
According to Rasgon, while AI shares might have halted recently, demand for Nvidia’s chips remains robust, a crucial factor for sustained growth.
In this context, Nvidia investors have little cause for concern after CEO Jensen Huang recognized the company is experiencing high demand, creating tension among clients as they question whether the semiconductor powerhouse can meet their requirements.
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