Quick Look:
- Nvidia stock rose 4.8% to $123.54, reflecting market confidence; recent volatility tested support at the 50-day moving average.
- Strong bookings for new Blackwell architecture and sustained demand for H100 and H200 products indicate robust future performance.
- Piper Sandler and Loop Capital analysts increased their price targets, reinforcing the bullish sentiment.
- Anticipation of Nvidia’s CEO speaking at SIGGRAPH 2024 and discussion with Meta’s CEO, highlighting AI advancements, supports a positive outlook.
Despite the recent fluctuations in Nvidia’s stock performance, Wall Street analysts maintain a bullish outlook on the tech giant. Investors anticipate the upcoming fiscal second-quarter results on August 28 to be the next significant catalyst for Nvidia’s shares. Piper Sandler analyst Harsh Kumar backs this optimism. He recently elevated his price target for Nvidia stock from $120 to $140, reiterating his overweight or buy rating.
Strong Momentum and Future Projections
Nvidia’s recent performance in the stock market has been impressive. Nvidia’s stock climbed 4.8% on the trading ion, closing at $123.54. This surge reflects the market’s confidence in Nvidia’s continued growth, which is significantly ahead of the anticipated earnings report for the July quarter and guidance for the October quarter. Harsh Kumar’s optimistic note to clients highlights the robust business trends the company has demonstrated over the past year. These trends are expected to persist, particularly with the official launch of the Blackwell architecture in the upcoming quarter.
This positive outlook is critical to Nvidia’s dominance in accelerated computing and processors for generative artificial intelligence. The company has established itself as the premier player in this sector, and analysts believe it is well-positioned to maintain its leadership.
Navigating Market Volatility
Nvidia’s stock journey has been smooth. After reaching an all-time high of $140.76 on June 20, the stock experienced some volatility, testing support at its 50-day moving average line over the last three trading sessions. However, Nvidia stock bounced off this crucial support level, resulting in a significant upward movement.
Kumar emphasizes that the overall demand for the company remains extraordinarily strong. The company’s primary focus is on securing supply to meet this demand. Notably, Nvidia is witnessing robust bookings for its new Blackwell launch and sustained demand for existing products such as the H100 and the H200, the latter of which debuted in fiscal Q2 2025. This sustained demand gives Nvidia visibility into its order pipeline well into the middle of the calendar year 2025, at the very least.
Enhanced Price Targets and Analyst Confidence
Harsh Kumar is not alone in his positive assessment of Nvidia’s future. Loop Capital analyst Ananda Baruah also increased his price target for the company’s stock, raising it from $120 to $175 while maintaining a buy rating. This upward revision reflects a shared sentiment among analysts that Nvidia is on a solid trajectory, driven by its innovative product lineup and market dominance.
Positive Catalyst Watch Ahead of SIGGRAPH 2024
Citi analyst Atif Malik has initiated a “30-day positive catalyst watch” on Nvidia shares, adding to the bullish sentiment. This anticipation surrounds the SIGGRAPH 2024 conference, where Nvidia’s CEO Jensen Huang will speak. The conference is a significant platform for showcasing advancements in computer graphics and interactive digital technologies.
A highlight will be a public discussion between Jensen Huang and Meta CEO Mark Zuckerberg on July 29. This conversation will likely shed light on the future of AI and how Nvidia’s processors deliver ROI for AI applications. Citi has reiterated its buy rating on Nvidia stock with a price target of $150. This move reinforces the positive outlook shared by multiple analysts.
A Bright Future for Nvidia
The bull case for Nvidia remains robust, supported by solid market trends, innovative product launches, and strategic supply chain management. Analysts across Wall Street are aligning in their positive assessments, raising price targets, and reiterating buy ratings. With the fiscal second-quarter results and significant events like the SIGGRAPH 2024 conference on the horizon, Nvidia is poised to continue its impressive performance in the tech sector. Investors and market watchers will undoubtedly keep a close eye on these developments as Nvidia continues to drive forward in the ever-evolving landscape of artificial intelligence and accelerated computing.
