Hedge fund manager Cathie Wood is capitalizing on the Nvidia (NASDAQ:NVDA) stock rally. She continues to sell NVDA shares, ahead of Q4 earnings, the Wall Street Journal reported. Notably, Nvidia stock has gained nearly 47% year-to-date. Further, it’s up about 252% in one year. The chip giant will announce its fourth quarter Fiscal 2024 financial results on February 21.
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Speaking to the Journal, Wood said Nvidia is the leader in the artificial intelligence (AI) space. However, she believes NVDA is a cyclical stock and expects increased competition and inventory correction to pose challenges. Wood confirmed that she recently sold Nvidia stock worth about $4.5 million.
Nvidia Stock: Analysts’ Increased Price Targets
While Wood sells NVDA shares, analysts are upbeat about its prospects, with several analysts increasing the price target and maintaining a bullish stance.
On February 16, analysts from Wedbush increased the price target to $800 from $600. Further, Wells Fargo raised the price target to $840 from $675. At the same time, Oppenheimer upped the price target to $850 from $650. These analysts expect NVDA to deliver solid earnings and offer a promising outlook for the whole year.
Nvidia – Q4 Consensus Estimate
Analysts expect Nvidia to deliver revenue of $20.37 billion, marking a substantial increase from the $6.05 billion reported in the prior-year quarter. The strong momentum in the Data Center business, led by demand for AI computing, will support the company’s top-line growth.
The significant increase in sales will likely cushion its bottom line in the fourth quarter. Wall Street expects NVDA to report earnings of $4.59 per share in Q4, compared to $0.88 in the prior-year quarter.
Is Nvidia Stock a Buy, Sell, or Hold?
Nvidia stock has a Strong Buy consensus rating based on 37 Buy and three Hold recommendations. However, due to the significant rally in its shares, analysts’ average price target of $746.91 implies 2.86% upside potential from current levels.
