Shares of the chip maker Nvidia (NASDAQ:NVDA) continue to trend higher thanks to Artificial Intelligence (AI)-led demand. As a result of this growth, Nvidia’s market capitalization has increased substantially, reaching closer to Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL). However, analysts’ average price target indicates that it is unlikely that NVDA’s market cap will surpass that of AMZN and GOOGL over the next 12 months.
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Notably, NVDA stock is up about 216% in one year and has gained more than 41% year-to-date. As a result, Nvidia’s market capitalization reached $1.73 trillion based on its closing price on February 7. In comparison, Amazon stock sports a market cap of $1.77 trillion, about 2.3% higher than NVDA. Moreover, GOOGL’s market cap of $1.81 trillion is 4.5% higher than that of Nvidia.
What is Analyst Prediction for NVDA?
Wall Street is bullish about NVDA stock. However, due to the significant increase in value, analysts’ average price target shows downside potential in Nvidia stock.
Nvidia stock has a Strong Buy consensus rating based on 34 Buys and four Hold recommendations. Analysts average price target of $687.09 implies about 2% downside potential from current levels.
Meanwhile, Wall Street maintains an optimistic outlook on AMZN and GOOGL stocks, as both have a Strong Buy consensus rating. Further, analysts’ average price target suggests a nearly 22% upside potential in Amazon stock from current levels. Similarly, Alphabet’s average price target shows 13% upside potential over the next 12 months.
