Nvidia’s stock (NVDA) may continue to drop in the short term, according to a note from investment firm Raymond James. The chip maker’s shares have pulled back significantly from their 52-week high of $140.76 per share to the current price of $113.06. However, analyst Javed Mirza believes the price can still fall another 16% to $94.94 per share.
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Mirza noted that Nvidia has “triggered a mechanical sell signal” based on a moving average convergence/divergence indicator that tracks price momentum. He also highlighted that Nvidia’s price is moving below its 50-day moving average and showing early signs of selling pressure. This suggests an intermediate-term correction phase of about 1-3 months. He added that if the stock closes below the 50-day moving average for multiple days, it could potentially drop to his previously mentioned price target.
Investor Sentiment for NVDA Stock
The sentiment among TipRanks investors is currently positive. Out of the 748,394 portfolios tracked by TipRanks, 19.5% hold NVDA stock. In addition, the average portfolio weighting allocated towards NVDA among those who do have a position is 13.43%. This suggests that investors of the company are extremely confident about its future.
Furthermore, in the last 30 days, 2.4% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
What Is the Target Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 146% rally in its share price over the past year, the average NVDA price target of $142.74 per share implies 26.25% upside potential.
