Needham hiked its price target to $350 using a similar case, with its analyst Rajvindra Gill comparing Nvidia to Intel (NASDAQ: INTC) and Microsoft (NASDAQ: MSFT) ahead of the PC revolution. And Muse - wisely, in my opinion - points to Nvidia “ becoming the standard AI platform.”Īs Tom Taulli pointed out earlier this month, Muse isn’t alone in that argument. The second aspect is the long-term potential of Nvidia. Muse seems to be projecting something close to $10 in FY20 EPS a 35-40 forward price-to-earnings multiple would move the stock toward the $330-$380 range. The Street, no doubt, is expecting a significant fall-off in cryptocurrency-related revenue - which has been a source of anxiety for Nvidia investors - but a deceleration to single digits does seem unlikely.Īnd if NVDA can keep recent earnings growth intact, it likely will maintain its earnings multiple - if not see it expand. The company hasn’t missed Street expectations on the bottom line in three full years.
Analysts have been underestimating Nvidia earnings for years now. History alone suggests Muse probably has a point. Yet Street consensus at the moment suggests a rather soft ~9% increase in EPS in fiscal 2020. Muse wrote that Nvidia could increase earnings 30-35% in each of the next two years. From a short-term standpoint, the firm simply sees near-term earnings estimates as too conservative. There are two components to Evercore’s upgrade. Can the NVDA Stock Price Really Hit $400? And that path shows why Nvidia stock remains a buy, even after the huge gains of the past few years. I wouldn’t necessarily guarantee that kind of upside - it was only seven months ago that I was calling for the stock to hit $250 - but the path exists. Suggesting another 40% gain for such a widely-covered stock seems, at best, overly optimistic.īut there is a case for Nvidia to continue to climb - and to hit the target Muse cites. Nvidia stock already trades at 35 times fiscal 2020 earnings.
The NVDA stock price already has risen by a factor of 11 in just the last three years. Nvidia stock gained 5% on the upgrade.įrom one standpoint, Muse seems overly aggressive. Muse moved its target for the NVDA stock price to $400 - the highest on Wall Street. Nvidia (NASDAQ: NVDA) saw a nice bounce on Friday, thanks to an analyst upgrade.
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