NVIDIA Stock Forecast Revised Higher to $201

NVIDIA Stock Forecast for the next 12 months is $201 (Revised Higher)

Latest NVIDIA stock price

NVIDIA Stock Forecast 2022: Stock Performance

	1 Month	YTD
NVIDIA	*-10.3%*	*-60.2%*
Qualcomm	*-11.4%*	*-39.7%*
AMD	*-24.4%*	*-61.4%*

Table of Contents

Disappointing results could spell trouble for NVIDIA

Restrictions on China chip exports: The U.S. restrictions on chip exports to China are expected to affect Nvidia’s sales by 5% to 10%, but Nvidia commented that these rules would have no material effect on its business.
Nvidia and Delloite expansion of their partnership: Nvidia and Delloite are expanding their partnership to provide hybrid-cloud services to their clients based on Nvidia AI and Nvidia Omniverse. Through this alliance, Delloite professionals using Nvidia platforms can help enterprises to build and use various AI services.
Nvidia expanded its partnership with Booz Allen Hamilton and The Broad Institute: Nvidia announced the expansion of its partnership with Booz Allen Hamilton to provide customers with AI-enabled Cyber security. It also expanded its partnership with the Broad Institute to help biomedical researchers by providing better tools based on AI to improve analyzing data on the Terra Cloud Platform
Poor second quarter results – Nvidia reported Q2 (quarter ended July 31, 2022) on August 24, 2022, and the results were disappointing for sure. It reported a revenue of $6.7 billion, well below the previous guidance of $8.1 billion. Moreover, the EPS shrank 72% to $0.26 only, one of the worst performances in the last four quarters. Add to it, the gross margin is down from 60-65% range to 46%. So, the results missed analysts’ estimates on every parameter and hence saw the wrath of the investors.

Poor Guidance for Q3 – Management still believes that worse is not over for Nvidia and has given poor guidance for Q3. It expects the revenue to be only $5.7 billion, down more than $1 billion from what Wall Street had been predicting. However, it expects the gross margin to come back above 65% and the dip in Q2 was just because it was clearing old stock to line up fresh products.

Fed Chairman’s hawkish comments– On Friday (26,08.2022), Fed Chairman Jerome Powell spoke for only 9 minutes and made very hawkish comments about the economy and inflation. As per him, the US economy might have to bear some pain in the short term. It only signals that in the coming Fed meeting the interest rates are going to be hiked by another 75 basis points. It is a negative point for the tech industry and the Nasdaq index fell by more than 4% as a result.

All in all, there are various negative factors piling up for Nvidia as a company. But Nvidia is making its presence felt in various sectors like AI and Omniverse platform. The problems are cyclical and Nvidia is sure to rebound by late 2022 or early 2023.

NVIDIA Stock Forecast: Analyst estimation

Average NVIDIA Price Target for next 12 months	$201
*Citigroup*	*$210*
*Barclays*	*$200*
*Susquehanna*	*$180*
*BMO Capital*	*$210*
*Mizuho*	*$205*

Nvidia Stock Forecast: Q2 Results

Q2 Revenue: $6.51 billion, up 68% over Q1, Outlook: $6.3 billion
Diluted Earnings Per share (GAAP) is $0.94 up by 24% over the last quarter.
Data Center Sales at $2.37 B, up 35% over a year ago (GPU Accelerators)
Gaming revenue at $3.06 B up 85% over a year ago (GPU)

Outlook

Q3, 2023, Revenue: $6.80 billion. Outlook impacted due to Russia and COVID in China

NVIDIA Stock Split: Is there a Split on the Cards?

NVIDIA Stock Forecast: Outlook For 2022

NVIDIA is a major player in the gaming and data center GPU business

Nvidia is likely to dominate the GPU market in the future
Nvidia is likely to continue this dominance in the graphic card market in 2022 as well.
In 2022, Nvidia is launching 65 new software and development kits including new and updated computing libraries like modulus, cuOpt, Megatron, RAPIDs, DOCA and many more to facilitate the data scientists, researchers, and students.

NVIDIA Stock Forecast 2022: Buy, Sell or Hold?

Despite the surging demand for AI in 2021, Analysts believe NVDA has more potential to the upside in 2022. As there will be an increase in demand for gaming laptops, the stock price is expected to take off in 2022. Most Analysts have classified that stock as a buy or outperform at the moment.

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