The astounding growth of Nvidia (NASDAQ:NVDA) has been one of the biggest stories on Wall Street in recent memory. The semiconductor giant has gained 120% in 2024 alone, while its success has become synonymous with the AI revolution taking the world by storm.
Nvidia’s first fiscal quarter results highlighted this momentum, with year-over-year sales skyrocketing by 262% to $26 billion. Additionally, for the fiscal second quarter, the company is projected to report about $28 billion in revenue, representing a 98% year-over-year growth.
However, despite the strong yearly gains, Nvidia shares have faced volatile trading recently. Concerns over customer spending, supply chain disruptions, and election-year regulatory uncertainties have prompted some investors to exit.
But Morgan Stanley analyst Joseph Moore isn’t worried. He still sees a bright future for Nvidia.
“Through those concerns, the earnings environment is likely to remain strong, for NVIDIA and for the whole AI complex,” Moore opined.
In fact, the recent downward movement could even be a boon for opportunistic investors.
“The selloff presents a good entry point as we continue to hear strong data points short term and long term,” says Moore, who adds that “this just represents a more compelling entry point.”
Moore’s optimism is supported by several factors. Despite a shift in demand from Hopper to Blackwell, there is still significant potential for Hopper. Moore predicts that Hopper will constitute “the majority of revenue through early 2025.”
“Hopper builds continue to go up, as H100 starts to transition to H200 (bringing better memory bandwidth from HBM3e as well as higher memory content), and we are hearing confidence that sales of both products will remain strong,” the analyst noted.
Going forward, there is significant excitement for the next generation Blackwell chips, “in particular the strong boost in inference performance driving customer interest.”
Moreover, the robust market environment should portend well for NVDA, according to the analyst. “There is a clear desire on the part of customers to continue to commit resources to developing multi modal generative AI,” argues Moore.
Based on the above, Moore has reinstated Nvidia on his Top Picks list, with a Buy rating and a $144 price target, implying a ~32% increase from current prices. (To watch Moore’s track record, click here)
Overall, the sentiment on Wall Street mirrors Moore’s optimism. Among 41 analyst assessments over the past three months, there are 37 Buy recommendations and 4 Holds, making NVDA a Strong Buy. The average 12-month price target of $142.74 implies potential gains of nearly 31%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
