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NVIDIA (NASDAQ: NVDA) has been one of the best-performing stocks in recent years, a streak that catapulted it to the most valuable company in the world. But over the past two months, it fell to second place and then briefly third, behind two other big tech companies. Apple and microsoft.
But don’t give up just yet on Nvidia, which rebounded to second place with a market capitalization of $3.41 trillion. Many Wall Street analysts believe the best is yet to come for this crucial supplier of chips to power artificial intelligence (AI). Here’s what they think about the company’s most recent quarterly results.
The stock has pulled back in recent weeks, but smart investors should recognize this as just noise. Looking at the company’s most recent quarterly results, announced on December 6, pretty much everything is going well for Nvidia right now.
A Wedbush analyst, Dan Ives, called the earnings report “impeccable” and added that it “should be framed and hung in the Louvre.” He went on to call CEO Jensen Huang the “godfather of AI” and called the company’s latest Blackwell AI chip the LeBron James of semiconductors.
Ives added: “We believe Nvidia has charted a path to a market cap of $4 trillion and beyond, and this is bullish for the broader tech rebound toward the end of the year and 2025.”
Following the earnings report, analysts from three other companies: J.MorganDA Davidson and Bernstein raised their price targets for the stock.
Davidson’s Gil Luria said: “Nvidia is within its means to extend growth into next year, given feedback from hyperscalers about additional investments in AI computing and the company’s ability to deliver even with production setbacks.”
And William Stein of Truista said Nvidia “remains he “Artificial intelligence company due to its culture of innovation, occupation ecosystem and massive investment in software, pre-trained models and services.”
Although the chipmaker’s stock has retreated recently, Wall Street analysts remain very optimistic about its long-term prospects. Should you buy the pullback? We’ll talk about that below.
There is a big difference between a business doing well and a stock price doing well. Nvidia will grow by leaps and bounds in the years and decades to come.
But the share price already reflects much of this potential. Even with the company’s total value at more than $3 billion, the stock is priced at a staggering 30 times sales. Microsoft, by comparison, trades at just 13 times sales, while Apple trades at a relatively paltry 10 times sales.
