Forecast Nvidia Stock

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Forecast Nvidia Stock

Forecast: Nvidia Stock Will Cross $300

Analysts think Nvidia stock can easily hit $300 over the next 12 months. This comes at a time when Nvidia stock is clearly trading below its ATH or even yearly highs.

One reason why Nvidia stock can trend higher is its dirt-cheap valuation. Based on the next financial year's earnings forecast, the forward P/E is around 17.

Nvidia Stock Has Low Valuation

That's a low valuation considering Nvidia is a tech and AI stock. Also, Nvidia's revenue is expected to increase by 82% y/y.

In fact, most of the analysts think that Nvidia stock is undervalued. The 12-month average price target is $303 when we try to find the average of all the different price targets.

Another reason why Nvidia stock will trend higher is its sentiment. It has started to improve, and it wil soon reflect in the share price.

If we look beyond that, there's also a factor that can have a long-lasting impact on Nvidia. Elon Musk recently announced that SpaceX will now be using Nvidia chips. This clearly highlights the quality of Nvidia chips and also tells us that it has earned another big customer.

This statement from the SpaceX CEO comes at a time when AMD and Broadcom are also making high-quality AI chips. This move highlights that SpaceX has chosen Nvidia over others.

While Nvidia's P/E is low, AMD's P/E is in the 60s. This alone tells us that Nvidia stock is way cheaper than its peers.

However, the one thing that could derail the $300 target is a meltdown in the AI stocks. Another risk is a dip in Nvidia's future earnings.

The price target also depends on Nvidia improving its production of the new Vera Rubin chip. The sale of this chip will boost revenue, which will eventually boost the stock price.

With all things considered, the risk-reward of buying Nvidia stock at current levels looks very good. So, if you are thinking of buying an AI and chips stock, you can consider Nvidia stock.

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