Nvidia Stock Forecast 2023: Will NVIDIA Reach $300?

Nvidia Stock Forecast 2023: Read about short-term and long-term NVIDIA (NVDA) Stock Predictions.

Average NVIDIA Stock Forecast for the next 12 months is $301

Latest NVDA Stock Price

NVDA Stock Performance in the last 12 months

• Last 1 Month: (+14.7%)
• Last 6 Months: (+119.1%)
• 1 Y: (+6.1%)

NVIDIA Stock Forecast 2023: Analyst Estimates

NVIDIA Stock Forecast for the next 12 months	$301
Oppenheimer	$300
Truist Securities	$289
Wells Fargo	$320
Mizuho Securities	$290
BMO Capital	$305

NVIDIA Favorite among institutional investors

NVIDIA Stock Price Prediction for the next 5 years (Aggregated)

Why NVIDIA is a Good Buy?

Strong Bussiness Outlook: NVIDIA is a leader in several key markets, including graphics processing units (GPUs), artificial intelligence (AI), and gaming. This dominant market position provides the company with a competitive advantage and helps it to generate consistent revenue and profits.

Growth in AI and data centers: NVIDIA’s GPU technology is well-suited for AI and data center applications, which are both growing markets. The launch of AI Chatbot, ChatGPT has been welcomed by the NVIDIA CEO who expects ChatGPT to help the NVIDIA stock to grow.

Strong financial performance: NVIDIA has been consistently reporting strong financial results in recent years, with revenue growth and earnings beating analysts’ expectations. This trend is likely to continue due to the company’s expanding product portfolio and market opportunities.

Strong partnerships: NVIDIA has formed strategic partnerships with several major technology companies, including Microsoft, Google, and Amazon. These partnerships provide NVIDIA with access to new markets and customers and can help drive growth in the long term.

NVIDIA Stock Technical Analysis

Recently the stock price of NVIDIA started to surge and the main reason behind it was the integration of the AI tool ChaptGPT with Microsoft’s own search engine, Bing. NVIDIA has been the top investment choice among semiconductor companies with respect to AI.

NVIDIA stock breached $200 and was comfortably heading toward $250. However, in the last few days, the stock has been under bearish pressure and has failed to break above $250. NVIDIA’s stock performance this year can be summarised as:

• January: +36.5%
• February: +11.9%
• March*: +19.9%
• YTD: +89.9%

Here is how NVDA Performed on the last trading day:

• Open: $264.68
• Close: $271.91
• Gain/Loss: +2.73%
• Market Cap: $671.61 B

NVIDIA stock has been bullish. The buying pressure has been high and this year alone the stock is up nearly 90%. The reason behind the surge of NVDA stock can be attributed to the massive development in the field of Artificial Intelligence. The launch of ChatGPT has played a crucial role in the surge in the stock price of NVIDIA.

NVIDIA highly benefits from the growing acceptance of ChatGPT. NVIDIA recently launched AI-Powered NVIDIA DLSS 3 to New AAA Games Including Diablo IV. The latest development suggests that NVIDIA is turning out to be the best bet after ChatGPT went viral.

Technically NVIDIA is overbought. The bearish momentum has faded away and the bulls are in control. In terms of market cap NVIDIA is well-placed to attain the $700 B market cap valuation

The stock is surging and the buyers are now eyeing a $300 price target. In the last 3 trading weeks of March NVDA gained around 20%. The net NVIDIA stock price is above both the 50-day as well as the 200-day Moving averages.

The 50-day Moving average of NVDA on the 4-hour timeframe chart is $238 and the 200-day MA is $187.

For Friday’s trade, the support for NVIDIA stock is around $256 while $300 is now the psychological resistance for NVDA. The Relative Strenght Index of NVDA confirms the bullish momentum. The RSI is within the overbought territory and with more buyers, it will likely rise higher.

The Stochastic RSI on the other hand has fallen from the overbought territory. It is now below the 14-day SMA. The Moving Average Convergence/Divergence indicator is throwing a buy signal. The MACD line is above the signal line. The volume histogram bars are on the bullish axis.

Overall NVDA stock is bullish and the trade recommendation is a buy.

NVIDIA Stock Forecast Today

Nvidia (NVDA) Stock Forecast 2023: Quarterly Result

NVIDIA released its Q4 earnings and the company witnessed a slight improvement in the final quarter of 2022. Here is a brief summary of NVIDIA’s performance in Q4 of 2022:

• NVIDIA reported EPS of $0.88 (adjusted) versus expectations of $0.81
• The revenue for Q4 was $6.05 billion against the expectations of $6.00 billion.
• Nvidia reported $0.57 in GAAP net income per share.
• The data center revenue was up by 11% on an annual basis to $3.62 billion. 
• Nvidia reported a 46% drop in gaming revenue in the fourth quarter. The total reported gaming revenue was $1.83 billion.
• Nvidia’s professional visualization business for designers saw a 65% decline to $226 million in revenue,
• Automotive revenue was $294 million, up 135% from last year.

NVIDIA Last 4 Quarters EPS and Revenue

• Oct 2022: EPS: Miss -17.61% Revenue: Beat 1.92%
• Jul 2022: EPS: Miss -1.49% Revenue: Beat 0.05%
• Apr 2022: EPS: Beat 4.86% Revenue: Beat 2.39%
• Jan 2022: EPS: Beat 7.96% Revenue: Beat 2.87%

NVIDIA 2023 Q1 Target

Nvidia forecast $6.5 billion in sales in its first quarter, higher than the $6.33 billion expected by Wall Street.

Will NVIDIA Reach $1000?

For Nvidia, the requirement of a license for sale in China and Russia acted as the last nail in the coffin. However, The opportunities in the form of data centers and Metaverse are knocking at doorsteps, and Nvidia is all prepared to welcome them. Therefore, despite the restriction in sales, NVIDIA’s stock price could reach $1000 in the coming years.

In the last 5 years, EPS has been 12.1% annually. Therefore, if the current growth momentum and PE multiples continue, it is likely that NVIDIA will reach $1000 anywhere between 2035 and 2037.

Read Detailed Explanation of Will NVIDIA Reach $1000?

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Nvidia (NVDA) Stock Forecast 2023: Bull Case

Partnerships of NVIDIA: The chipmaker NVIDIA produces one of the fastest processors. This factor has helped NVIDIA have a critical partnership with major cloud computing companies like Amazon Web Services, Alphabet’s Google Cloud, and Microsoft’s Azure Cloud. With the growing cloud computing industry, NVIDIA is likely to benefit from it and this will help the company grow its revenue and in turn help NVDA stock rise.

Growth Opportunity in Data Centre

Although Nvidia is known for graphics cards and video games, growth is likely to come from data center solutions. Businesses worldwide were already moving data into the cloud before the Covid-19 pandemic, but the pace increased multifold post-pandemic.

And that is where the growth opportunity lies for Nvidia and its high-margin data center solutions. As more and more businesses opt for cloud storage, this industry is not going to get smaller. Plus, while GPU is the main forte for Nvidia, it also specializes in handling complex workloads like AI. Nvidia is already disrupting Intel’s data center turf by producing data processing units (DPU) that can handle such complex workloads.

In the second quarter, Nvidia experienced data center growth of 61% compared to last year, which will not slow down in the coming months. Hence, the data center will be the pivot point for the growth of Nvidia and its share price in 2023.

Personal Visualization is the next big thing

Nvidia has another fast-growing segment named personal Visualization. It, too, offers double-digit sustainable growth potential in 2023. Personal Visualization will only enable Nvidia to become a key player in Metaverse, and Metaverse represents a multitrillion-dollar opportunity over the long run.

Omniverse is Nvidia’s answer to Metaverse. According to reports, Nvidia will take a $1000 license fee per user to use Omniverse, and there are expected to be around 40 million designers worldwide using Omniverse soon. The Omniverse platform is already available to 3 million developers, which could increase multifold in 2023.

With Omniverse, any software-based bot, like a virtual assistant in a car, can get its virtual avatar. Analysts believe there will be millions of these virtual assistants one day; hence, Omniverse can prove to be a cash cow for Nvidia in 2023 and the coming years.

Datacenter and Omniverse are smaller revenue segments than GPU sales, but these areas have the potential to become the next big thing, and Nvidia is poised to gain from these sectors.

NVIDIA Stock Forecast 2023: Bear Case

Restriction to sales of data center chips to China and Russia

In a bear market, negative news keeps coming one after the other, holding the market in the tight grip of bears. For Nvidia investors, 2022 was already challenging due to high inflation numbers.

In September, one more bombshell imploded for Nvidia. The US government ordered to an immediate halt of sales of specific chips and data center systems to China capable of handling advanced artificial intelligence (AI) workloads. National and International Security are given prime reasons for this move.

In an SEC filing, Nvidia informed that the US government imposed a new license requirement, which is effective immediately for exporting the company’s A100 and upcoming H100 integrated circuits to China, Hong Kong, and Russia. Also, a license requirement applies to systems Nvidia sells to incorporate these chips, like DGX systems. Moreover, the rules are applicable for any future chips with the same or more excellent capability compared to A100.

The effect of these restrictions on Nvidia’s revenue was evident when the company declared third-quarter guidance during the second-quarter results in 2022. Management said it would lose approximately $400 million in potential sales to China due to this license requirement.

It will be interesting to note the losses due to this turnaround during the third-quarter earnings report. Still, US-China relations are not expected to improve anytime soon, a significant headwind for Nvidia heading into 2023.

It is all about being “expensive”

Nvidia is one of the prominent growth stocks trading at high valuation metrics, and that somewhat explains the sell-off in Nvidia in 2022. Investors are wary of high-growth stocks when Fed continuously increases interest rates, and anticipated recession is glooming over the world.

Growing Competition

With the booming chip industry, the competition has also grown. NVIDIA faces huge competition from companies like Cisco. Juniper. Arista Networks. Dell Technologies. Extreme Networks. Huawei. VMware. Therefore, for NVIDIA to survive it will have to be the best.

Nvidia (NVDA) Stock Forecast 2023: Is NVDA a buy for 2023?

The picture looks gloomy for Nvidia and other such high-growth tech stocks. For Nvidia, the requirement of a license for sale in China and Russia acted as the last nail in the coffin. The theory of Nvidia being overvalued got the support of dismal quarter results and guidance. All these negative factors led to a decline of about 60% in Nvidia shares in 2022.

But is it all over for Nvidia? Certainly not. The opportunities in the form of data centers and Metaverse are knocking at doorsteps, and Nvidia is all prepared to welcome them. Even not so good second quarter had 61% growth in the business of data centers. Metaverse is still at the infant stage but has excellent upside potential.

How much of these growth factors will play out in 2023 will be a big question. But it is equally essential that negative factors like interest rate hikes by Fed and bumpy license procedures for supply to China should subside.

It is a buy though one would strongly recommend doing your own research as well.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.