Wall Street analysts just keep boosting stock price targets for advanced semiconductor chip supplier Nvidia(NASDAQ: NVDA). On Monday afternoon, Nvidia kicked off its 2024 GPU technology conference (GTC) with a keynote address by founder and CEO Jensen Huang.
Just ahead of the conference, HSBC analyst Frank Lee kept his buy rating on Nvidia's stock but increased his firm's price target to $1,050 from its current $882 share price. The new stock price target represents an upside of 18% from where Nvidia shares traded Monday afternoon.
The AI roadmap is getting clearer
Huang will use his two-hour keynote speech in San Jose, California, to give investors an idea of what's ahead for the company in the coming year. The HSBC analyst sees Nvidia's upcoming AI platform enhancements enabling it to have more control over the AI value chain and expand Nvidia's market.
That could bring more pricing power for Nvidia even as its revenue has already been soaring. Nvidia recently reported fiscal 2024 fourth-quarter net income that soared about 770% year over year for the period ended Jan. 28, 2024. Lee sees earnings per share (EPS) continuing to rise at least through fiscal 2026.
Nvidia's runway for growth could be much longer than just the next several years, too. I think that makes Lee's price target easily achievable. But investors should also realize the stock has soared over the last year, and there could be some short-term corrections.
The company itself could make a misstep, or competition could take away some of Nvidia's sales. The overall market, or technology stocks specifically, could also undergo a correction that would hit Nvidia's share price. But those investing for the long term should have Nvidia as part of their portfolio regardless. Any correction could just be a great opportunity to add to that position.
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HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.
