Is Nvidia worth buying now?
The largest chip maker in the US saw its shares decline despite a trio of price target upgrades this week.
- Nvidia Corp (NASDAQ: NVDA) share price ended 2.3% lower on Thursday (08 July 2021)
- This trailed the S&P 500, which finished the day 0.86% lower
- The stock’s decline was also despite bullish price revisions newly issued by Truist, Oppenheimer and KeyBanc analysts
- Interested to trade NVDA shares? Open an account with us today to get started.
Nvidia stock price: What’s the latest?
Nvidia shares closed 2.3% lower on Thursday, despite new price target upgrades.
Truist Securities analyst William Stein was much more bullish in his latest investment thesis, lifting his firm's price target on Nvidia to US$910 from US$768 previously, while maintaining a ‘buy’ rating on the shares.
The analyst wrote that the data centre end market is likely to ‘continue to grow rapidly’, based on an analysis of sector trends.
Stein also increased his 2022 earnings per share estimate for Nvidia to US$18.13 from US$17.08 in his latest note published earlier in the day, citing an analysis of the company’s software monetisation figures.
Finally, he believes that the chip maker will remain a leader in parallel computing solutions, which will continue to drive its long-term structural growth.
How do other analysts view NVDA shares?
Oppenheimer’s equity research team also raised its price target on NVDA to a much more optimistic US$925 from US$700 before, alongside an unchanged ‘outperform’ call.
Analyst Rick Schafer predicts that Nvidia, along with other semiconductor stocks, are likely to beat analyst estimates in the upcoming quarters, as sectoral demand remains strong across the board.
KeyBanc analyst John Vinh was the most bullish of the lot, raising his firm’s price target to US$950 from US$775.
He maintained an ‘overweight’ recommendation on the shares, citing a recent confirmation that gaming demand remains robust and has not been inflated by cryptocurrency mining trends.
The stock has rallied 14.7% in the last one month. The latest analyst sentiments published by MarketBeat show a consensus rating of ‘buy’ and price target of US$720.32 on NVDA.
The price target equates to a potential 9.5% downside from the counter’s last traded price of US$796.11.
Nvidia’s ARM takeover deal gets boost
Nvidia shares rallied 3.5% after three of the world’s largest chip makers publicly endorsed its proposed US$40 billion acquisition of UK-based semiconductor group Arm Ltd.
They included Nvidia’s US rivals Broadcom Corp. and Marvell Technology, Inc., as well as Taiwan-based MediaTek Inc.
That update saw Citi analyst Atif Malik raising the success probability of the ARM acquisition deal to 30% from 10% previously.
The analyst said that the news is a ‘big step forward’ and that UK authorities will probably end up approving the deal because of Nvidia’s commitment to investing more into Arm.
However, Malik believes that China is less likely to approve the deal and that the ‘path remains narrow’, as it could potentially hurt their access to Arm.
How to trade Nvidia shares
Take your position on US shares for just a small initial deposit with spread bets or CFDs.
Spread bets are completely tax-free, while CFDs are free from stamp duty. You can also buy and take ownership of US shares commission-free with us.
Whether you trade or invest, you’ll get access to pre-market and after-hours trading on 70 US stocks.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
