NVIDIA Stock Forecast: NVDA falls 3% as investors post profits before profits

Nvidia closed 3.3% inferior at $258.28 during the last trading session.

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Struggling to break the resistance on the Daily cross mark Let’s see if we can get the breakthrough before the end of the week!

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NVIDIA Stock Forecast: Third Quarter Earnings Better Than Expected

• On November 17, Nvidia released third quarter results and they beat most estimates. It reported revenue of $7.1 billion against an expectation of $6.82 billion. Revenue was 50% higher than the same quarter a year ago.
• Diluted earnings per share came to $1.17 per share versus an estimate of $1.11.
• Data center revenue grew more than 55% year-over-year to $2.9 billion. Gaming revenue was $3.2 billion, up 42%.
• Auto sales fell more than 10% to $135 million. The decline was expected as the industry grapples with supply chain issues. Nvidia also sold $105 million worth of cryptocurrency mining cards, down from $266 million sequentially.
• Nvidia’s much-talked-about segment, its professional viewing business, small as it is, has seen the most growth. In the third quarter, it reported revenue of $577 million, up more than 140% from a year ago.
• Nvidia also raised its guidance for the fourth quarter and expects sales of around $7.4 billion, well above analysts’ estimates of $6.86 billion.

Nvidia Stock Forecast: Analysts have raised the target price

After Nvidia reported better-than-expected results, analysts issued bullish stock comments –

• Raymond James analyst Chris Caso asserted a strong buy on the stock with a target price of $365, up significantly from its previous estimate of $225. According to Caso, supply struggles are easing, creating demand for its data center and a positive environment has been building for the past two quarters.
• Jefferies analyst Mark Lipacis also raised the stock’s target price from $260 to $370. Mark estimates that earnings per share will increase to $16.40 per share by 2025, and revenue from virtual reality platform Omniverse will be $80 billion.
• Needham analyst Rajvindra Gill raised the target price from $245 to $400. It weighs on the meteoric growth of the data center business and the promising outlook for the global gaming market.

NVDA Stock Predictions: Omniverse Platform and Metaverse Opportunity.

• Omniverse is Nvidia’s answer to the burgeoning Metaverse opportunity – a virtual world for people to engage and communicate with each other using augmented reality, virtual reality, and artificial intelligence.
• Omniverse is like a replication engine for training robots, augmenting real-world data, and simulating real-world officials. One of the features of the metaverse is to use avatars that will spawn in front of others and Nvidia offers Omniverse avatars for this.
• On the earnings call, Huang claimed an annual license fee of $1,000 per user to use Omniverse. It is expected that there will be around 40 million designers worldwide, which will bring Omniverse revenue to around $40 billion in the coming years.
• The $40 billion figure excludes sales of GPUs that users will need to purchase for their PCs to run Omniverse, which can run on any device using Nvidia RTX graphics technology. This will further boost the GPU core business for Nvidia.

All of this explains how big the opportunity is at Nvidia’s doorstep and it cannot be overlooked as a catalyst for growth in the near future.

NVDA Stock Forecast: Should You Buy Now?

Nvidia is firing on all cylinders and taking all positive steps to exceed its expectations. Nvidia is a classic example of growth value, and no one can deny the future growth prospects for virtual reality, augmented reality, and artificial intelligence.

However, NVDA shares are currently trading at more than 80 times forward earnings and could therefore be volatile in the short term. However, the stock is a good long-term bet.

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Note: Crowdwisdom360 gathers forecasts and data from all over the net and has no internal views on likely stock or cryptocurrency trends. Please consult a registered investment advisor to guide you in your financial decisions.