Shares of the chip giant (NASDAQ:NVDA) are among the most-discussed stocks on the social media platform Reddit. While this trending Reddit stock has witnessed a blistering rally so far this year, analysts’ average price target implies that the bull run in NVDA stock will be sustained.
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With this backdrop, let’s understand what’s in store for NVDA shareholders in the future.
Is Nvidia Share a Good Buy?
Nvidia is the biggest beneficiary of the AI (Artificial Intelligence) revolution. The company’s HGX platform and cutting-edge technology are widely recognized as the powerhouse behind generative AI and large language models. This supports NVDA’s dominance in the AI space, which makes it a solid long-term stock.
This is evident from analysts’ Strong Buy consensus ratings on the stock. 37 out of 38 analysts covering NVDA stock have rated it a Buy. In a report to investors dated November 16, Susquehanna analyst Christopher Rolland reiterated the Buy recommendation on Nvidia stock. Further, the analyst increased the price target on NVDA to $625 from $600 ahead of the Q3 earnings announcement. Meanwhile, Rolland expects the company to deliver solid results and guidance due to an improving supply chain, “long and deep backlog,” and “strong mix shift from A100 to H100.”
It’s worth mentioning that Nvidia will release its Q3 Fiscal 2024 financial results on November 21.
While analysts are bullish about NVDA’s prospects, the average NVDA stock price target of $648.01 implies an upside potential of 30.96% from current levels.
Bottom Line
Nvidia stands to gain substantially from the solid demand for its accelerated computing and AI solutions, which will boost its Data Center segment’s performance. Additionally, the company is broadening its enterprise portfolio and is well-positioned to capitalize on the opportunities arising from heightened demand from cloud service providers and consumer internet companies. Beyond the momentum in the Data Center segment, Nvidia is also set to gain from the acceleration in the Gaming division.
To summarise, this trending Reddit stock has solid long-term prospects. This is reflected in the analysts’ Strong Buy consensus rating.
