Nvidia Stock Rises Over 233% in the Last Year, Analysts Predict Further Growth

Nvidia Corp (NASDAQ: NVDA) concluded trading on Friday with a minor gain of 0.8%, bringing its share price to $138 and elevating its market capitalization to over $3 trillion. Many analysts hold the belief that the stock still has significant upward potential.

Market Insight: Ram Ahluwalia, who is the CEO of Lumida Wealth Management, expressed confidence in Nvidia achieving a valuation of $4 trillion. He stated, “The demand for GPU chips remains robust, and we are witnessing early adopters begin to realize returns on their investments.”

Similarly, Tony Wang, a portfolio manager at T. Rowe Price, shares this optimistic outlook on the stock. His sentiment is echoed by strong industry experts like Dan Niles, the founder of Niles Investment Management. Niles mentioned, “There are several more years of AI investment ahead before the industry reaches saturation. I believe Nvidia's revenue could double in the coming years, and the stock may also double.”

According to analysis from Goldman Sachs, there is an anticipated exponential growth in demand for Inference compute as organizations, including OpenAI, require higher throughput and lower latency solutions. They also highlighted that Nvidia’s comprehensive approach positions the company to take advantage of this expanding market opportunity in Inference. Goldman Sachs has projected a price target of $150 for Nvidia shares.

Bofa Securities reaffirmed their investment stance by maintaining a ‘Buy’ recommendation on Nvidia stock and increasing their price target from $165 to $190.

Currently, Nvidia's consensus price target, based on evaluations from 38 analysts, stands at $234.49.

Recent Performance: Nvidia's stock has appreciated by approximately 186.5% year-to-date, according to Benzinga Pro. Its market capitalization is about $3.39 trillion, making it the second-largest US company, only behind Apple, which has a market cap of around $3.57 trillion and is yet to reach the $4 trillion mark.

Over the past year, Nvidia shares have increased by more than 233%, rising from $41 to the current price of $138. Exchange-traded funds (ETFs) that are focused on Nvidia, such as the GraniteShares 2x Long NVDA Daily ETF and the Direxion Daily NVDA Bull 2X Shares, have experienced substantial gains of at least 440% within the same timeframe.

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