Nvidia Stock Price Prediction: $200 to $270 per Share! | Nvidia Stock | NVDA Stock | NVDA

we were talking earlier in the program about what we could actually expect from Nvidia and I'm curious about the sticking points in your view how uh does this kind of change the picture not just for NVIDIA but set the tone for the broader Tech sector okay uh no good question I I think um I mean with the volatility we've seen in nvidia's Outlook and question marks that been raised several weeks ago with the delays on the Blackwell chip there are I think there have been bigger fundamental questions asked about the sustainability of demand within the AI sector whilst I think the long-term Outlook still looks good and there are plenty of applications where this new technology you know has significant use and should realize uh cost savings and efficiency Savings in the long run the question mark at the Forefront of people's minds at the moment is you know companies are um because of driven by fear of missing out are spending significant amounts on capex at the moment you know 10 ions 10 billion plus in capex per quarter how sustainable is that if they're not monetizing it at a fast enough rate so I think that sort of medium-term question is an overhang on the sector at the moment um you know the degree to which Nvidia can address that concern remains to be seen but we we'll hear on that uh from the results later today and then obviously there's all the near-term potential execution risks with a production delays that we've seen on Blackwell which caused a volatility several weeks ago so again that's going to going to be another core Focus for these earnings well talk to us as well about where this demand is actually coming from use that keyword sustainability as well and I think the concern around here is that these hyperscalers can't continue to fund I think it's somewhere between 40 to 50% of nvidia's bottom line where else is NVIDIA seeking that demand from yes absolutely it's a very concentrated customer based particularly on the high-end data center um business at the moment so they're looking to broaden that business this out um try and uh increase demand from a broader range of lower end corporate customers but again you know these chips are not cheap uh depending on the variant you look at they're sort of 20 $30,000 plus you know it's it's an expensive hobby um so there needs to be a firm business plan and a uh realistic chance of these companies monetizing and breaking into profit um plus they need the balance sheet as well it's an expensive uh business to get into so again I think these are potential barriers to The Wider proliferation of this technology outside these cash-rich hyperscalers I think there is potential demand there but again is it going to match Market expectations with the stock pricing in so much um you know and a still a fairly Punchy valuation uh compared to its peer group over the last three years nvidia's stock has experienced significant growth mostly due to its early advantages in the artificial intelligence AI infrastr structure development but after such a significant rally the issue is where will the stock go next let's examine how Nvidia got to be the market leader and where the stock might go over the next 3 years in order to speed up Graphics rendering in video games Nvidia first created gpus for the video game industry the business Rose to prominence in the field and in 2006 developed the open software platform qba which lets programmers directly program the company's chips since Nvidia dominates this large but rather specialized Market developers were typically instructed to use Nvidia qda tools to program gpus gpus eventually began to appear in various applications because of their powerful Computing capacity they started to be utilized for mining cryptocurrencies as well as the automotive industry since its 2020 acquisition of melanox a networking startup Nvidia has been talking about artificial intelligence in the context of data centers but last year chat GPT contributed to the mainstreaming of AI and Microsoft's increasing funding and collaboration with openai the company that created chat GPT subsequently sparked an arms race in AI infrastructure large language models llns an AI inference depend on gpus which are now the foundation of the AI infrastructure it so happens that Nvidia is the world's top GPU manufacturer even though Nvidia may not have foreseen the abrupt spike in demand for IR related gpus it had established itself well in advance as a leader in AI in the data arena with its software platform it had also established a broad mod for gpus many years prior retraining developers to utilize software from competitors is timec consuing and costly because they have been trained on the company's software this should assist Nvidia in maintaining its leadership position in the GPU Market along with further Innovation the business is cutting the length of its development cycle from 2 years to just one year despite the delay the company plans to start shipping the new Blackwell architecture by the end of this year or the beginning of 20125 it plans to introduce its new Reuben architecture in 2026 and it has already made that announcement in viia should be able to preserve its Price power and Technology lead thanks to this longer Innovation cycle the main factors from there are demand and the quantity of chips Nvidia can produce if you want to keep up with nvidia's latest updates and keep up with the stock market latest news you can subscribe to our investing tutorial Channel as we post daily updates about the biggest changes and Catalyst in the markets so click the Subscribe button if you don't want to miss the newest Market updates now back to today's video Welcome Back to the watch list I'm Nicole pedales shares of Nvidia moving higher ahead of the high l anticipated earnings report do out tomorrow afternoon options Traders are making their bets on the swing either way but I'll tell you most of the people I speak with are expecting something good out of Nvidia tomorrow is that a problem Logan gillan's with us Analyst at juel financial and will Ry founder CEO at Granite shares Logan I'll start with you because almost every person I speak with while they seem a little cautious they think something's coming out of Nvidia that they're going to like um is that too much optimism I actually think it is to some degree I like how you said uh that it is highly anticipated with that emphasis oh my goodness it seems like every investor out there is holding their breath for this one and is looking towards this number it's really interesting to see where the consensus numbers and even the whisper numbers have been over the last couple weeks just anticipating what is happening in this earnings report and I think basically Perfection is baked in the the look is that they're going to blow numbers out of the water consensus numbers if you look back two weeks ago were about 59 cents for earnings now they're at 65 with the The Whisper numbers being closer to 71 cents per share so there is a lot baked in there's a lot of anticipation I think it's overdone I think that we're going to see some sell the news after this comes out on Wednesday afternoon and into Thursday the interesting thing for us will be to see how it affects the rest of the market but again I think there's basically Perfection baked in there's so much enthusiasm about going into this report but there's a lot of nerves as well and I think we'll see sell the news because of that look I mean the Blackwell chip was also highly anticipated and delayed the hopper chip certainly had a lot of fanfare um will what say you what kind of expectations do you have for tomorrow look this is the most important earnings call of this Q2 season maybe even the most important earnings call of the year so far even eclipsing the most recent comments by the FED chairman about the potential rate cut in September so this is absolutely huge tomorrow and um I think again this is going to be good news from Nvidia and and probably like for your last segment um as your guest was mentioning that um this is really about leadership in terms of driving the entire Market higher and you I think the Catalyst the market is looking for a catalyst to go higher and I think that could be the the Nvidia earnings call tomorrow listen will do you think in favor or out of favor right now you know because we also watch just the news cycle or how popular Tech is at any given time will look it's definitely in favor it it's NE it's not you know a broad um brush that paints all tech companies equally but the tech trade is still very much kind of where it's at I mean I just look at the resilience you know since you know August 5th um Nvidia even I mean Nvidia just on you know supposedly the news that the Blackwell chip was a little bit delayed you know from Pete to trough sold off about 30% um but has been bought aggressively back along with you know other top uh Tech names so it just shows me that you know along with the FED sort of positive you know comments here at the market that people are not ready to get out of the AI trade yet by any any means from a demand perspective it seems that the development of AI infrastructure is still in its early stages while large Tech businesses like cloud computing are increasing their Capital expenditures connected to AI alphabet and meta platforms have both stated that there is more risk in underinvestigated this implies that addition gpus will be required later on the triple digigit rate of growth in nvidia's Revenue that it has been seeing recently will not continue but considering the strong demand for NVIDIA chips and the spending comments from major clients it is conceivable that over the next 3 years the company's Revenue may increase by 30% to 50% annually analysts expect that revenue for the fiscal year 2025 which ends in January will be approximately 100 $21 billion this would translate into revenue for the fiscal year 2028 which ends in January 2028 and is essentially 2027 Revenue growth is projected to be 50% the following year 40% the year after and 30% in the fiscal year 2028 assuming a 20% tax rate on the company's operating profits and an average quarterly increase in adjusted operating expenses of 133% through the fiscal year 2028 corresponding with the sequential growth observed in the previous quarter by the fiscal year 2028 Nvidia would bring in over $66 billion in revenue or $676 per share nvidia's forward price to earnings ratio P/E would decrease with slower growth nevertheless a multiple of 30 to 40 times on the shares in 2027 would seem acceptable if Revenue increased by 30% in the fiscal year 2028 in three years that would put the Stock's value between $200 and $27 per share therefore there's a significant chance that in 3 years nvidia's stock will double from its current level so what does this really mean for nvidia's stock let's find out but first if you made it this far into the video thank you these videos take a lot of effort and time to make so if you enjoyed them please hit the like button subscribe to the channel this goes a long way in helping us grow that said back to the video well Robert I I also want to talk to you a little bit about this kind of regional diversity that we're seeing as well because Nvidia was one of the chip companies that had to tweak some of their technology in response to some of the US uh kind of sanctions rules and and the limits when it comes to chip export controls to China it's handy that you're sitting in Hong Kong where Nvidia had to make that extra kind of chip that to to cater to that audience and this is something that some of its peers have not been able to do Micron is just one example in is still struggling with that pivot as well even asml right here in Europe talking about how to navigate those uh those export controls from your Vantage Point what does the broader chip sector actually look like given those geopolitical headwinds yeah now again a great question I mean geopolitics is really driving a lot of the decision- making within the broader semiconductor sector at the moment not just the issues that uh surround the island of uh Taiwan um but also uh the increasing economic competition uh particularly in high in technology between the US Europe um and China so high-end semiconductor fabrication and also tied into AI are a major driver of this uh increasing geopolitical tension um so that is forcing China to be to to try and you know double up on its efforts to drive or to become self-sustainable not just in semiconductor manufacturer but also in AI uh and the impact on Nvidia is is you know historically China's a you know a reasonable proportion of the business that's been shrinking in recent quarters and obviously the export bands in geopolitics are not helping the outlook on thats side of business obviously it is not a prime driver of their uh Revenue at the moment but again it's a potential headwind that's likely to grow in the coming quarters as China again Double Downs on its uh self- sustainability objectives having conducted a survey to determine investor expectations for the response to the prince release prior to nvidia's highly anticipated earnings report on Wednesday overall the study indicates that most people are bullish going into the print more than 3,000 people have voted in the poll that was released on Monday and 41.5% of them think that Nvidia stock would increase by at least 8% when markets open on Thursday as a result of the company's results report the previous day in the meantime 24.9% predict an increase in share price of 0.1% to 8% conversely 13.4% of participants expect a decrease in the stock price of 0.1% to 8% whilst more than 20% predict a noteworthy reduction of 8% or greater after the market closes on August 28th Nvidia is scheduled to reveal its second quarter fiscal 2025 earnings investors will be keenly observing if the company can affirm that the data center business will continue to grow as well as any updates on any delays in the delivery of the new Blackwell a processor visible Alpha reports that Wall Street analysts predict nvidia's Revenue to reach $28.8 billion more than double from the same quarter last year additionally it is anticipated that net income will more than double to $4.95 billion with a roughly 160% gain this year Nvidia has more than doubled in value and is now among the best performing stocks in the snp500 over the course of 2022 the stock is increased by almost 783 per. the results announcement on Wednesday will be significant for institutional and individual investors alike to justify its lofty valuation the Santa Clara California based Corporation needs to provide solid performance and upbeat projections nvidia's current valuation is 47 times forward earnings forecasts the only other Magnificent Seven with a higher valuation is Tesla