Nvidia: Will the IT Stock Reach $1,100?

Last Updated: 6. Dezember 2023By

Nvidia may not be as well-known as Coca-Cola or Sony, but it’s an integral part of your digital life. Nvidia is a leading manufacturer of IT hardware. The US company designs, develops, and markets graphics and media communication processors and related software for PCs, workstations, and digital entertainment platforms.

1,288% Profit Surge For the third quarter, the company reported revenues of $18.12 billion, compared to $5.93 billion a year ago. This more than tripled the revenue. Net income was $9.24 billion compared to $680 million last year. Earnings per share from operations were $3.75 compared to $0.27 the year before. This was a sensational profit surge of more than 1,288%.

Forecast Higher Than Expected The company expects revenue of $20 billion for the current quarter, with a possible deviation of plus or minus 2%. Analysts surveyed by LSEG expect a revenue of $17.86 billion. This is also higher than analysts‘ expectations.

Chip Delivery To China Delayed Nvidia has informed its customers in China that the market launch of a new artificial intelligence chip developed to conform to US export regulations is being delayed until the first quarter of next year. This announcement is in light of the tensions between the US and China.

Sensational Chart โ€“ Sensational Price Potential Conclusion: Everything is right with Nvidia. As you can see from the chart, the stock has run up by more than 218% this year in a sensational way. Even analyst expectations are extremely positive. 51 of 54 analysts are recommending buying and 3 are recommending holding even at this high level. Not one analyst considers a sale to be necessary. The average analyst target price of $667 has already been reached. However, there are also analysts who consider $1,100 possible โ€“ almost a doubling of the price. In view of a P/E of 38 for 2024, this is however quite ambitious.