Nvidia Share Price

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Nvidia Share Price

Nvidia (Nvda) Share Price: How High Can It Go?

Nvidia (NVDA) just continues to surprise everyone with its quarterly results. Every quarter, there are some voices that say that Nvidia (NVDA) will miss its earnings forecast. However, the actual data always show that the numbers were higher or in line with the forecasts.

The Q3 data also showed that the sales of the Nvidia Blackwell chips went through the roof! Even the CEO said that all of their cloud GPUs are sold out.

Nvidia (Nvda) Earnings Beat Estimates

The CEO commented on how they are going through the virtuous cycle of Artificial Intelligence. All the big companies are rushing to build their AI infrastructure, and this has created a shortage of chips in the market.

The earnings during Q3 were way higher than the estimates, and Nvidia (NVDA) is also doing well when it comes to managing expenses.

For example, the revenue of Nvidia (NVDA) was $57.01 billion while the forecast was for $55.2 billion. Similarly, the EPS was recorded at $1.30 while the forecast was for $1.26.

In the last 12 months, the share price of Nvidia (NVDA) has only increased by 27%. So, even the upside is very reasonable and isn't getting ahead of itself.

But we must also understand that the demand just can't keep rising forever. There will come a time when the demand will fall to normal levels and the market will be flooded with more Nvidia chips.

However, we also can't ignore the fact that everyone is talking about AI these days. So, this also naturally translates to more new investors for shares like Nvidia (NVDA).

Based on all of this, it makes sense to expect more upside in Nvidia (NVDA) shares in the coming quarters. But at the same time, caution is needed as we might be in an AI bubble similar to the dotcom bubble.

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