NVIDIA Stock Forecast 2023
NVIDIA Stock Forecasts – The average NVIDIA Stock Forecast for the next 12 months is $760.0. NVIDIA Stock Forecast 2023 is $601
Latest NVDA Stock Price
NVIDIA Stock Price Prediction: Latest News
NVIDIA’s stock price has been trending lower for the last 3 weeks. Since its surge in August, the stock price is already close to falling below $400 and the market cap is on the verge of crashing below $1 T.
Nvidia engineer and research scientist David Pantaleoni called on Google AI researchers to leave the company. He argued that Google AI is too focused on commercializing AI and not enough on thinking about the potential risks of AI. He wrote, “Google AI is one of the most powerful AI research organizations in the world. But it’s also one of the most dangerous. Google AI is focused on commercializing AI, not on thinking about the long-term consequences of AI. Google AI is also one of the least transparent AI research organizations in the world.”
Nvidia is teaming up with Mercedes-Benz to design digital twins for real-life factories. This will allow Mercedes-Benz to simulate and optimize its production processes before they are implemented in the real world.
NVIDIA Stock Forecast 2023
NVIDIA Price Targets: Analysts
|NVIDIA Stock Forecast for the Next 12 Months||$625|
NVIDIA Stock Price Prediction for the Next 5 Years (Aggregated)
- NVIDIA Stock Price Prediction 2023 is $515
- NVIDIA Stock Price Prediction 2024 is $597
- NVIDIA Stock Price Prediction 2025 is $663
- NVIDIA Stock Price Prediction 2026 is $744
- NVIDIA Stock Price Prediction 2027 is $803
NVIDIA Stock Technical Analysis
Nvidia has been riding the AI wave, but AI stocks have been under stress in the last couple of weeks. NVIDIA ended the week slightly higher on Friday, but the stock price has been trading negatively for the last 3 weeks.
On the 4-hour timeframe chart, Nvidia’s stock price is currently in a downtrend. The 50-day Moving Average (MA) for the asset is at $459, while the 200-day MA stands at $410. The stock price has dipped below its 50-day MA and is now approaching the 200-day Moving Average, which serves as the immediate support for the asset. Should buyers be unable to maintain the stock price above this level, it could provide sellers with an opportunity to push the stock price below $400.
The current alignment of the NVIDIA stock price on the 4-hour timeframe is concerning. The asset is technically oversold. The Relative Strength Index (RSI) reading for NVIDIA is currently at 28.4. The RSI has been trending downward which suggests that sellers are in control, as they have outnumbered the buyers.
The Williams Percent Range of the asset is -99.7. It is on the downtrend. This is a bearish signal. The selling pressure is up for the asset.
The MACD indicator suggests that the trade recommendation for the asset is to sell. The MACD reading on the 4-hour timeframe chart is -9.42 and it is below the signal line.
Overall NVIDIA is technically bearish and the overall outlook is negative.
NVIDIA Stock Forecast Today
|1. Market's Wisdom||Neutral|
|1a. Market Data||Partially Bearish|
|1b. Technical Recommendation||Buy|
|2. Crowd's Wisdom||Neutral|
|2a. Social Media Buzz||Higher|
|2b. Social Media Sentiment||Lower|
Q2 Earnings Summary
- Total revenue of $13.51 billion, an increase of 101% from the previous year and 88% from Q1.
- Data Center revenue stood at a record $10.32 billion, marking a 171% increase from the previous year and 141% from Q1.
- GAAP operating income surged by 218% QoQ and 1,263% YoY.
- Non-GAAP operating income rose by 155% QoQ and 487% YoY.
- GAAP earnings per diluted share: $2.48, up 854% YoY and 202% QoQ.
- Non-GAAP earnings per diluted share: $2.70, up 429% YoY and 148% QoQ.
- Highlights from Various Segments:
- Data Center: Record revenue, new product announcements including the NVIDIA GH200 Grace Hopper Superchip, NVIDIA L40S GPU, and partnerships with companies like ServiceNow, VMware, and SoftBank for AI initiatives.
- Gaming: Revenue of $2.49 billion, the release of the GeForce RTX 4060 GPUs, and the introduction of NVIDIA Avatar Cloud Engine for Games.
- Professional Visualization: Revenue of $379 million, with new RTX GPUs based on the Ada Lovelace architecture announced.
- Automotive: Revenue of $253 million, featuring partnerships and product integrations like NVIDIA DRIVE Orin in the XPENG G6 Coupe SUV.
- Shareholder Returns: NVIDIA returned $3.38 billion to shareholders through 7.5 million shares repurchased for $3.28 billion and cash dividends. The company has $3.95 billion remaining for share repurchases, with an additional $25 billion approved by the Board of Directors.
- Upcoming Dividend: NVIDIA will distribute a quarterly cash dividend of $0.04 per share on September 28, 2023.
- Outlook for Q3:
- Expected revenue of $16.00 billion (±2%).
- Gross margins are projected at 71.5% (GAAP) and 72.5% (non-GAAP), with a variance of 50 basis points.
- Estimated operating expenses are around $2.95 billion (GAAP) and $2.00 billion (non-GAAP).
- CEO Statement: Jensen Huang, NVIDIA’s CEO, emphasized the onset of a new computing era with a shift towards accelerated computing and generative AI. He highlighted the company’s GPUs, Mellanox networking, and CUDA AI software stack as the backbone for this computing infrastructure.
Nvidia (NVDA) Stock Forecast 2023: Bull Case
Strong Business 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 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.
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.
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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.
NVDA Stock Performance
- Year to Date (2023): +228.5%
- Last 12 Months: +204.5%
- Last 5 Years: +607.9%
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.
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 the 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.