Constellation Research predicts that Nvidia’s stock will rise by 65% to reach $200 per share within the next year. The research firm anticipates that Nvidia’s stock will continue to climb over the next 18 to 24 months, attributing this growth to the company’s dominance of the AI market. According to Constellation Research, there are seven key factors contributing to Nvidia’s business success and ensuring its continued expansion.
The founder of Constellation Research, R “Ray” Wang, highlighted Nvidia’s position as a pivotal player in the AI industry, with CEO Jensen Huang leading the company towards vertically integrated dominance from silicon to software. Wang emphasized Huang’s visionary leadership and compared it to key figures in the tech industry such as Larry Ellison and Mark Zuckerberg.
Wang outlined seven moats around Nvidia’s business that set it apart from competitors, including a high barrier to entry in the chip market, high switching costs, dominant market share, a solid product roadmap, the GPU becoming the default standard in AI, and impressive financial performance statistics. These factors collectively contribute to Constellation Research’s optimistic outlook on Nvidia stock.
Despite a recent 14% decline in Nvidia’s stock price, Wang views this as a buying opportunity for investors due to external market factors causing a temporary downturn. He believes that the current market conditions present a good time to capitalize on Nvidia’s growth potential before a potential upswing.
Other analysts on Wall Street, such as Rosenblatt, also share Constellation Research’s positive outlook on Nvidia’s stock, with a price target of $200 per share. Rosenblatt specifically mentioned the potential for Nvidia to monetize its CUDA software platform as a driver for future growth.
In summary, Constellation Research’s assessment of Nvidia’s stock reflects a bullish outlook, attributing the company’s continued success to its leadership, strong market position, product innovation, and financial performance. With multiple analysts forecasting a rise in Nvidia’s stock price over the coming months, investors may view the current dip in share price as an opportunity to capitalize on the company’s promising future prospects.
Article Source
https://markets.businessinsider.com/news/stocks/nvidia-stock-price-prediction-upside-200-per-share-target-ai-2024-6
