The momentum in Nvidia (NASDAQ:NVDA) stock continued in 2024, with its shares recording 45.7% growth year-to-date. Thanks to the ongoing rally, Nvidia’s market capitalization gained substantially, exceeding Amazon (NASDAQ:AMZN) and inching closer to Alphabet (NASDAQ:GOOGL). Despite this notable growth, analysts raised their price targets for NVDA stock, ahead of Q4 earnings, implying further upside potential.
Nvidia will release its Q4 Fiscal 2024 financial results on February 21.
Analysts Weigh In
Ahead of the Q4 print, UBS analyst Timothy Arcuri raised NVDA’s price target to $850 (17.85% upside potential) from $580. The analyst reiterated the Buy recommendation on February 13. Arcuri expects the chip giant to deliver a solid Q4 beat as artificial intelligence (AI) demand remains strong.
Echoing similar sentiments, Mizuho Securities analyst Vijay Rakesh raised NVDA’s price target to $825 (14.38% upside potential) from $625 and maintained a Buy. The analyst raised his estimates and sees Nvidia as the top AI player.
Nvidia – Q4 Expectations
Wall Street analysts expect Nvidia to post revenue of $20.23 billion, up significantly from the $6.05 billion reported in the prior-year quarter. The company expects strong growth in the Data Center business, led by solid demand for AI computing.
Thanks to the record high sales, analysts expect NVDA to post earnings of $4.56 per share in Q4, up from $0.88 in the prior-year quarter.
Is NVDA a Buy or Sell?
Based on analysts’ consensus ratings, NVDA stock is a buy ahead of Q4 earnings. It sports a Strong Buy consensus rating, reflecting 34 Buy and four Hold recommendations.
Nvidia stock has gained over 214% in one year. Thus, analysts’ average price target of $703.30 implies 2.49% downside potential from current levels.
