bruce Anane
NVIDIA Corp (NASDAQ: NVDA) has surprised the world with its first-quarter results and has also released equally surprising results for the second quarter. The conclusion is that NVIDIA has established itself as the leading player in AI during this first stage of the revolution. The company’s chips are the number one foundation for accelerated and AI-based computing applications, where most of the computing money is flowing this year.
Key points:
– NVIDIA has released another shocking report with equally surprising indications.
– The stock is quickly evolving following this news and could gain 35-55% in a few weeks.
– Investors should not rush behind the stock but rather wait for prices to decline to strengthen their position.
– 5 stocks that we prefer over NVIDIA.
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The question is: is it too late to join this market? Based on three important factors, this stock could increase by at least 25% before reaching a peak, with a higher probability of 50% before the end of the game. 50%? Really? That’s how NVIDIA reaches $750.
The simple fact is that NVIDIA is currently the most popular stock. As a savvy investor said after the second quarter release, it only takes one hot report to outweigh the effect of four bad reports. This means that there are currently many losing trades in the market and bulls are accumulating. This alone could push the stock higher, and there is a strong bullish trend on the charts.
The foundations of this decision started last year when the stock started reaching its lowest level. The bottom formed a head and shoulders pattern that has been confirmed as a reversal this year with the rise of AI. This reversal is now completed by a strong continuation signal that points the market upwards. From a technical standpoint, the head and shoulders pattern is now the focus. It indicates the magnitude of this market, and it is a significant market. The H&S reversal price is $179, which represents a gain of 160% from the bottom to the neckline. Project that gain of 160% to the neckline, and you get $756, a 51.2% increase from the $500 exit price after the second quarter. The activity following the breakout supports this target. A move higher from the breakout point near $480 confirmed support at $400, representing an additional gain of 37.5% to 72%. When projected from the $400 support and the $480 high, the targets range from $604 to $756, which aligns with the initial target. These targets are good for an average profit of 40%.
The result: they prove that NVIDIA is winning in AI and is living up to expectations.
NVIDIA’s results are surprising in themselves, but then you have to consider how surprising the forecasts were, the margin of outperformance, and the strength of MarketBeat.com’s consensus forecasts. The conclusion is that NVIDIA is not only winning in the AI field, but the change is accelerating and may not peak for several quarters. The key factor for NVIDIA is that it is not just a chip manufacturer, but a complete and full-service AI workshop that facilitates all levels of the industry. Fundamentally, NVIDIA is AI, and AI is NVIDIA.
The analysts will push NVIDIA even higher. Analysts have been a driving force in NVIDIA’s stock market throughout the year and will continue to be in 2023 and 2024. The second quarter release and forecasts saw at least 20 revisions in the first 12 hours, and all the news is moving rapidly. The 20 buys selected by MarketBeat.com’s tracking tool include 3 upgrades and 18 improved price targets. The target range is wide, with a minimum of $550 and a maximum of $1,100, which means the stock will more than double. The new consensus target is $645, representing an almost 30% increase from pre-market trading, which boosts the overall consensus. This means the market will increase for investors and traders, but chasing the price may not be a good idea. NVIDIA could make a big leap forward now, but long-term investors may want to wait for a price decline before adding positions, as volatility is also expected. The stock has increased by over 400% in the past 12 months and offers existing holders a good opportunity to realize profits.
Should you invest $1,000 in NVIDIA now? Before considering NVIDIA, you may want to hear this. MarketBeat tracks the top-rated and most successful Wall Street research analysts and the stocks they recommend to their clients. MarketBeat has identified five stocks that the top analysts are quietly telling their clients to buy before the market as a whole catches on… and NVIDIA was not on the list. While NVIDIA currently has a « moderate buy » rating among analysts, the top-rated analysts believe that these five stocks are a better buy. The article « Compelling Reasons NVIDIA Will Increase Another 50% » appears first on Marketbeat.
