Nvidia doesn’t seem to know the meaning of down.
On February 23, we noted, “The stock broke above resistance dating back to April 2022, and now trades at $231.90 a share. From here, we’d like to see NVDA test $300. All after the company posted strong earnings growth with EPS of 88 cents, as compared to expectations for 81 cents. Revenue came in at $6.05 billion, which was better than estimates for $6.02 billion.”
Just a few months later, NVDA is up to $298.22.
Now, we believe NVDA could test $350 for a few reasons. One, billionaire Stanley Druckenmiller’s family office just invested $220 million into the stock. All thanks to its involvement with artificial intelligence, which the billionaire says could be as “impactful as the Internet,” as quoted by Business Insider. Two, we expect for NVDA to push higher, as the company nears earnings on May 24., when it could blow past estimates.
Three, analysts still love the stock. Truist, for example, just raised its price target on NVDA to $322 from $289, with a buy rating. As noted by TheFly.com, “The firm states that its discussions with component suppliers into Nvidia’s supply chain suggest an uptick in demand for AI GPUs, and believes that upside “should be expected”, owing to the ever-increasing demand to build generative AI tools like ChatGPT. This should result in revenue and margin upside in Q1 results and Q2 guidance.”
Right now, we’re just waiting for NVDA to hit our initial price target of $300. Once that happens, we believe it could be headed to $350 next.