Nvidia saw a 2.6% increase in shares on Friday, ending the first half of the year with record profits. The chipmaker’s stock has surged over 150% this year, navigating a stock split successfully. However, concerns loom about maintaining this momentum as the stock dropped from a recent peak of $140. Micron Technology’s slump post-earnings report adds pressure ahead of Nvidia’s own earnings report expected in August. An Interactive Brokers strategist questions if Nvidia acknowledging high expectations could trigger a decline like Micron’s.
Nvidia’s forward price-to-earnings ratio is currently at 40, slightly above its five-year average, with Wall Street analysts setting an average price target of $128.15. While Nvidia has consistently surpassed earnings estimates and raised outlooks, growth has slowed in recent quarters. Positive factors for Nvidia bulls include increasing software revenue and AI’s expansion into more sectors of the economy.
In contrast, Advanced Micro Devices rose 3.2%, Intel rose 1.9%, and Supermicrocomputer fell 2.7%. Nvidia’s stock performance remains a topic of debate among analysts as they navigate potential challenges in the second half of the year.
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