From Nasdaq: 2024-08-06 11:10:10

Nvidia stock is down 28.6% from all-time highs, valued at $2.47 trillion, due to investor concerns about a possible U.S. recession, interest rate hikes in Japan, and geopolitical tensions. The delay of Nvidia’s next-gen AI chips to early 2025 has impacted market sentiment. Despite this, the stock has surged 108% in 2024.

Despite the chip delay, Nvidia’s Blackwell chips are crucial for the company’s future, with potential sales accounting for a significant portion of growth. The delay may cause short-term volatility, but long-term sales are forecasted to drive data center sales to $150 billion in 2026. Analysts remain positive with target prices set at $135.

Analysts believe that strong demand for Nvidia’s Hopper chips can offset revenue delays from the Blackwell production issues. Despite a massive increase in stock prices, Nvidia’s growth potential remains high, with sales expected to reach $166.18 billion in fiscal 2026. Analysts predict significant upside potential for NVDA stock.

The average target price for NVDA stock is $141.29, showing a 38% increase from current trading prices. While concerns exist about overvaluation due to the stock’s rapid rise, strong sales forecasts and analyst recommendations indicate continued confidence in Nvidia’s growth potential.



Read more at Nasdaq: Nvidia Sinks on AI Chip Delay, But is the Stock a Sell?