Wall Street bets big on Nvidia as NVDA targets new all-time high

In a remarkable stock market performance, Nvidia (NASDAQ: NVDA) roared to life in 2023, embarking on a monumental rally that propelled the tech behemoth’s shares to an all-time high of $474.94 in mid-July. 

Fueled by the unrelenting fervor surrounding the artificial intelligence (AI) sector, this ascent was briefly punctuated by a minor setback earlier in the month. 

However, the company’s shares have swiftly embarked on a renewed bull run, instilling optimism among investors that NVDA could print a fresh all-time high just a month after the previous record. 

The primary catalyst behind the latest rally is fresh, ultra-bullish bets by Wall Street analysts, who remain confident that the Santa Clara, California-based chipmaker has a lot more to offer, according to data retrieved by Finbold on August 22. 

HSBC delivers monster price target hike on NVDA

On Monday, August 21, analysts at banking giant HSBC raised the price target on Nvidia’s stock from $600 to $780, citing an improving sales forecast for the company’s fiscal 2024.

Specifically, HSBC offered bullish predictions for Nvidia’s AI data center sales and a noteworthy quarter-over-quarter increase of around 29% on $19.4 billion in total sales for the 2024 fiscal year. The prediction is significantly higher than consensus estimates of $13.7 billion. 

“We see Nvidia likely to beat its previous guidance as our fiscal year 2024 sales now up 9% ahead of consensus estimate and company guidance.”

– HSBC analyst Frank Lee said.

In addition, HSBC also hiked its earnings per share (EPS) estimates for Nvidia of 19% and 29%, which are currently 21% and 23% higher than consensus projections.

HSBC’s predictions underline the bank’s robust confidence in Nvidia’s growth prospects. Interestingly, HSBC was the only Wall Street bank that had a sell rating for NVDA at the start of the year, with a price target of just $136. 

In a span of only a few months, the UK-based lender’s price target for the technology company’s stock transformed from the lowest to the highest among all analysts.

Nvidia stock price analysis

At press time, Nvidia’s shares were standing at $469.67, after closing 8.5% higher on August 21 on HSBC’s move.

Over the past week, NVDA gained more than 16%, and around 2.5% on the month due to a recent share price dip.

Year-to-date, Nvidia skyrocketed over 216%, making it the best-performing stock within the S&P 500 index in 2023. 

With the Monday rally, Nvidia recaptured its 20-day and 50-day moving averages (MA) in a single trading session and is now just 1.1% short of its all-time peak of $474.94 recorded on July 18, 2023. 

Nvidia is set to report its Q2 earnings on August 23. In case of another blowout report, NVDA stock price could exceed the $500 mark, which also offers resistance as the 127.2% extension line comes in at around this zone. 

On the other hand, the $440 level will offer near-term support in case of a post-earnings selloff.

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