Nvidia (NASDAQ: NVDA) stock made a climb to $106.47 on Monday, gaining $3.64 (3.54%), despite lingering fears that it could plunge below the $100 mark.
Investors are eager to uncover the true value of Nvidia stock, especially after last week’s dramatic sell-off, which wiped out nearly $400 billion in market value after a near 10% drop on Tuesday, last week. This downturn contributed to the S&P 500‘s worst start to September since 1953, leaving many questioning whether the sell-off was justified.
The stock’s slide began following Nvidia’s earnings report on August 28, which, while better than expected, didn’t impress Wall Street. The company’s revenue beat projections by 4.1%, its smallest margin since the fiscal fourth quarter of 2023, sparking disappointment.
What analysts are saying about Nvidia stock
Recently, Toshiya Hari, a lead analyst at Goldman Sachs, remains optimistic, keeping a “Buy” rating on Nvidia and asserting that the sell-off was overdone.
According to Hari, while Nvidia’s recent performance hasn’t been stellar, its competitive edge in the merchant silicon market is undeniable, as the company continues to outpace custom silicon with its rapid innovation.
When asked if Goldman believed the Nvidia stock drop was exaggerated, Hari confidently responded, “Yes, we do,” adding, “The recent performance hasn’t been great, but we do remain positive on the stock <…> I think their competitive position continues to be really strong. We do think within merchant silicon, Nvidia is the go-to, and even versus custom silicon, they’ve got the edge in terms of the pace of innovation.”
Supporting Hari’s view, President Capital raised its price target for Nvidia from $140 to $152 on September 3 while maintaining a “Buy” rating. Bank of America, led by analyst Vivek Arya, also reaffirmed Nvidia’s top status, setting a $165 price target and labeling it an “especially attractive opportunity.”
Nvidia stock price target 2025
On average, analysts are offering a 1-year price target of $149.12, which would represent a 40.06% increase from the current price. Among 52 analysts providing forecasts, the maximum estimated price is $200 (+87.85%), while the minimum is $90 (-15.47%).
Over the past 3 months, 62 analysts have rated Nvidia, with 50 assigning a “strong buy,” 8 a “buy,” 4 a “hold,” and none recommending a “sell” or “strong sell.”
Clearly, the overwhelming consensus is a “strong buy,” and with such optimism, the stock remains a top contender for future growth despite recent volatility.
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Source: https://finbold.com/is-nvidia-stock-a-buy-sell-or-hold/