Breaking News
Investing Pro 0
Extended Sale! Save on premium data with Claim 60% OFF

Could Nvidia Reach $900 by 2024?

By Antonio FerlitoStock MarketsSep 21, 2023 10:11
ng.investing.com/analysis/could-nvidia-reach-900-by-2024-182519
Could Nvidia Reach $900 by 2024?
By Antonio Ferlito   |  Sep 21, 2023 10:11
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NVDA
-2.68%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

NVIDIA Corporation (NASDAQ:NVDA) has jumped an impressive 305% since its October lows.
 
Although many perceive Nvidia as overvalued, thinking that the stock will collapse, they have not considered its real economic value and potential.
 
Through calculation based on the discounted cash flow ('DCF') model and taking into account the future revenues of 2023, the correct price should currently be $451.90 instead of the current $439.00. This suggests that Nvidia is actually undervalued at the moment.
 
Nvidia's impressive growth is primarily attributed to its data center business, while other divisions saw modest growth.
 
Data Center revenue growth over the first two quarters has been incredible, up 140%. The data center market is expected to see continued revenue growth, with a compound annual growth rate (CAGR) of 4.66% between 2023 and 2027.
 
2023 saw an explosion in Nvidia's profits, driven by the thriving Artificial Intelligence market, which is a highly important and rapidly expanding sector, with a projected compound growth rate of 17.30% from 2023 to 2030. It is expected that by 2030, 70% of companies will embrace AI in their operations, a significant increase of 35% from 2023.

This makes now the right time to invest in AI and seize the opportunities it offers.
 
Moreover, Nvidia is in an excellent financial position.
 
Its operating margin is currently an outstanding 29.42%. While these numbers are slightly lower than all-time highs, in fiscal year 2022 at 37.31% and 36.23%, respectively, they still remain impressive.
 
If we take Nvidia's debt into consideration, this company stands out for its relatively low levels of debt. At the moment, its total debt stands at $9.9 billion with the debt-to-equity ratio being very low.
 

1D NVDA
1D NVDA

From a technical point of view, the trend is bullish.
 
Prices settled above the 200-day moving average and recorded increases with above-average volumes.
 
What will Nvidia's results be in the future?
 
According to analysts' estimates, Nvidia's annual revenue growth rate will be around 44% (My forecast is that the percentage will be higher). If this estimate is reached, the DCF model would predict a value for Nvidia of $882.18, with an annual return of close to 100% over the current stock price ($455.72).
 
Keep in mind that the market is always efficient and leading, so it discounts events on average 6/12 months in advance. When it comes to AI investments, there are risks, such as the impact of a recession.
 
However, knowing the nature of businesses, technologies that lead to cost reduction and increased productivity are always implemented.
 
My prediction according to my model is that the stock will trade at around $882 during the second quarter of 2024.

Could Nvidia Reach $900 by 2024?
 

Related Articles

Could Nvidia Reach $900 by 2024?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email