On June 11, 2024, Oppenheimer raised its price target on NVIDIA Corp (NASDAQ:NVDA) stock from $110 to $150 following the recent 10-for-1 stock split. This move highlights the growing confidence in NVIDIA’s future prospects, especially as the company continues to lead in the AI sector.
Oppenheimer’s analysts, led by Rick Schafer, cited the stock split and updated their model to include CY26 estimates for the first time, underscoring NVIDIA’s robust near- and medium-term growth potential.
Recent developments and strategic moves
NVIDIA’s recent strategic moves have bolstered its position in the tech industry. Founder and CEO Jensen Huang has been actively promoting NVIDIA’s advancements, notably during his keynote at Computex 2024.
He outlined the company’s upcoming product launches, including the B100, B200, and GB200/NVL36/NVL72, which are set to drive significant growth. Additionally, the company’s new Blackwell Ultra SKU, set for the second half of 2025, and the subsequent R100 family in 2026, highlight a continuous innovation pipeline.
NVIDIA’s strategic partnerships further solidify its market position. The recent collaboration with Zscaler to deliver AI-powered security solutions is a testament to NVIDIA’s expansive AI ecosystem.
By leveraging NVIDIA’s AI software portfolio, Zscaler aims to enhance its user experience and security offerings, illustrating the broad applicability and impact of NVIDIA’s technologies.
Analyst views and ratings
Analysts across the board have been bullish on NVIDIA’s prospects. The recent upgrades from Oppenheimerreflect a broader sentiment that NVIDIA is well-positioned to capitalize on the growing AI market.
Analysts at Barclays have recently upped their estimates, projecting that NVIDIA could generate $157.1 billion in fiscal 2026 revenue, driven by sovereign nations building their AI capabilities. This optimism is reflected in NVIDIA’s ability to continuously raise guidance, showcasing its strong demand and market leadership.
Evercore ISI has also highlighted NVIDIA’s potential to become a significant weight in the S&P 500, possibly reaching a 15% share due to its technological ecosystem and market dominance.
Valuation and market performance
While NVIDIA’s stock has experienced significant growth, reaching a market cap of $3 trillion, some analysts caution that its valuation might be stretched in the near term. The company’s P/E ratio suggests it is currently fairly valued, considering its impressive growth rates. However, the long-term potential remains immense, with predictions that NVIDIA could reach a $10 trillion market cap by 2030.
The road ahead: Can NVIDIA reach $150?
Given the company’s solid fundamentals, strategic partnerships, and strong market position, it appears plausible. The continuous advancements in AI, coupled with the growing demand for NVIDIA’s products, support this optimistic target.
But, let’s also take a look at the charts and decipher what they have to say about the stock’s price trajectory. Through technical analysis we can gain deeper insight into the potential movement of NVIDIA’s stock, helping to determine if it can indeed hit the $150 mark post-split.
In our previous article on Nvidia, ‘Mizuho raises NVIDIA’s price target to $1,275: Can it reach there?’, published before the split when the stock was trading near $1,100 we had advised bullish investors to wait for a retracement or consolidation before buying the stock.
We continue to hold that view, the stock has run up quite a lot in a short while and indicators across timeframes are in the overbought territory. Though it can climb higher from here on sheer bullish momentum, the risk of a quick retracement remains which is why it can be fatal for bulls to buy the stock at current levels.
Traders who are bearish on the stock and are eyeing for a quick retracement trade must also exercise caution. Unless the stock starts trading below its 100-hour moving average or its recent swing low at $106.94, short positions must be avoided.
Once the stock goes below $106.94, one can initiate a short position but must keep a wide stop loss at $126. If the bears get hold of the stock temporarily, they can take it down to below $80, where bearish traders can book profits and bullish investors can initiate a long position.
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