Dodo Finance: Nvidia Stock Could Reach $1,100

Nvidia Stock Continues Impressive Performance in 2024

Graphics chip manufacturer Nvidia has been on a winning streak, with its stock showing exceptional performance in 2023 and maintaining its momentum into the new year. The company recently reported a staggering 265% year-over-year growth in fiscal fourth-quarter revenue, which has led to a remarkable more than 55% increase in shares year-to-date.

Analysts have taken notice of Nvidia’s impressive results, with many of them raising their 12-month price targets for the stock to levels exceeding $1,000. This surge in optimism follows the company’s strong fiscal first-quarter revenue guidance of $24 billion.

KeyBanc analyst John Vinh, in particular, has raised his price target for Nvidia stock to $1,100, citing the company’s momentum and strong sales growth, especially in the data center segment. Nvidia CEO Jensen Huang also highlighted the diverse demand for data center products across various industries.

Despite the positive outlook, there are concerns about the sustainability of demand for data center products driven by artificial intelligence. While Nvidia’s valuation appears justified based on its earnings growth and current price-to-earnings multiple, investors are advised to approach with caution and consider the long-term prospects of the company before buying at its current price.

The Motley Fool Stock Advisor analyst team has not included Nvidia in their list of 10 best stocks to buy now, suggesting that investors should conduct their own research before making any investment decisions. Given the uncertainties surrounding the demand for data center products, it may be prudent for investors to carefully assess the risks before diving into Nvidia stock.