Analysts Raise Targets On Nvidia Stock – $1350 The New Mark For HSBC

NVIDIA shares (NASDAQ:NVDA) have been the highlight for many investors portfolios over the past year, as more than 200% gains put the stock in the upper echelon of mega cap companies that continue to show growth stock numbers. Analysts covering the stock are resounding in their support, with 40 out of 42 firms holding a ‘buy' rating.

Keeping up with the momentum, and revising price targets in line with expectations seems to be a full time job at some of the firms, and the latest upgrade from HSBC has moved their bar significantly. Having elevated their price target on NVIDIA stock from $1,050.00 to a strong $1,350.00, close to a street high ($1400) it is clear the firm are optimistic about the outlook with more than 30% upside from the last close.

The boost in NVIDIA's share price is down to a wave of operational success, and the demand for AI chips, but the wave of optimism from several equity analysts who have recently shared “buy” ratings and asserted favourable price targets for the tech giant also does no harm. Some recent upgrades that have come in for NVDA from firms such as:

• UBS have raised the firm's price target on Nvidia to $1,150 from $1,100 and keeps a Buy rating on the shares.
• Oppenheimer raised the firm's price target on Nvidia to $850 from $1,000 and keeps a Buy rating on the shares
• Goldman Sachs raised the firm's price target on Nvidia to $1,100 from $1,000 and keeps a Buy rating on the shares
• Jefferies raised the firms rating of Nvidia to a Buy rating and a price target of $1,200, up from $780

Their assessments paint a promising landscape for Nvidia's financial outlook.

Institutional investors are also showing movements in the equity. Firms including Ironwood Wealth Management LLC, Zweig DiMenna Associates LLC, Intellectus Partners LLC, Kennedy Investment Group, and Means Investment CO. Inc. have been actively trading NVIDIA shares, indicative of the ongoing dynamic interest in the company's stock among sophisticated market participants.

NVIDIA, the renowned provider of graphics, compute, and networking solutions worldwide, currently stands with a market cap of $2.26 trillion. The stock boasts a price-to-earnings ratio of 75.71, and exhibits a beta of 1.75, suggesting a higher volatility relative to the broader market. The company's 50-day simple moving average rests at $878.36.

On the financial performance front, NVIDIA reported a notable $5.16 earnings per share for the most recent quarter. This figure not only outpaced the consensus estimate of $4.21 but also showcased the company's operational efficacy with a high return on equity of 93.61% and a net margin of 48.85%. These indicators reflect the organisation's solid profitability.

Adding to the financial narrative, NVIDIA announced a quarterly dividend of $0.04 per share, paid on March 27th. This translates to a yield of 0.02% and reflects a dividend payout ratio of 1.34%, offering a modest return to shareholders on top of potential capital gains.

Looking ahead, sell-side analysts anticipate NVIDIA to register an earnings per share (EPS) of 22.55 for the current fiscal year, based on aggregated projections.

NVIDIA's presence is multifaceted, with a portfolio encompassing GeForce GPUs for dedicated gamers, Quadro/NVIDIA RTX GPUs for enterprise workstation graphics, and automotive platforms for sophisticated infotainment systems. The company's recent stock performance and solid financial metrics serve as a testament to its ongoing relevance and potential for growth in the competitive tech industry.