One of the most popular and remarkable companies traded on NASDAQ, Nvidia is a large technology company widely known for its production of graphic processing units (GPUs) and other hardware for a variety of devices. The stock has been following an overall downward trend since the beginning of the year, but many analysts claim it has a bright future ahead. In this article, we’re going to look at several reasons for the stock to grow and overview some predictions about its price in the coming years.
About Nvidia
Nvidia Corp. is a multinational tech company from California that specializes in producing GPUs which are used in different areas from the gaming industry and mobile computing market to cloud computing and supercomputers. Nvidia also tries to expand its operations into innovative fields like AI or machine learning. The GPUs made by the company are notably used for crypto mining, and that can be a good reason to believe in its stock, especially if you’re a crypto enthusiast yourself.
What affects the price
However, the recent rise of crypto mining is not the only factor affecting the stock price. There are less fundamental aspects that directly influence how it behaves. Quarterly revenue reports are an example here: when the company shows exceptional revenue numbers, the market reacts by buying the stock, raising its price. Other important factors include the amount of dividends and monetary cycles as well as the coming CHIPS act that may actually drive the price down.
The CHIPS act is a plan of the Biden government to support the national semiconductor industry. But the subsidies will be given only to onshore producers while Nvidia outsources its production, so these funds will boost other companies like Intel or Micron. That means the Nvidia stock may go down even more. But let’s look at Nvidia stock forecast alternatives offered by stock market experts.
Price forecasts
The Nvidia stock was at its all-time high level at the end of 2021: the price went up to about $320 per share — probably because of the rally on the crypto market. Now it’s worth about $130, but analysts think it’s going to grow in the next two or three years. According to Stock Forecast, the Nvidia stocks may reach $250 in 2023, and the overall growth by 2030 may reach 400%. However, AI Pickup says the stocks will be worth just about $85 on average by 2025.