Recent weakness in Nvidia (NVDA) is temporary.
Currently trading at $128.20, I’d like to see NVDA trade closer to $150 near term.
While it’s been driven by artificial intelligence, demand for its chips, and strong earnings growth, it’s also exposed to the metaverse with its Omniverse software. With it, companies can create and test virtual environments all in real time. Foxconn, for example, is using the Omniverse to create a digital twin of its new factory in Guadalajara to train robots in a virtual environment.
Helping, analysts at UBS say NVDA could earn $5 a share in 2025 as budgets for hyper-scalers begin to firm up. The firm also has a $150 price target.
Wolfe Research also raised its price target to $150, “noting that recent checks indicate a path to 50% or more content growth for Nvidia’s GPUs in 2025, with incremental upside coming from unit growth and better networking attach rates,” as reported by Seeking Alpha.