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Publication date: October 10, 2024
NVIDIA was until recently best known for the video cards in the PC. Especially gamers will be familiar with NVIDIA's powerful video cards.
Until a year ago, the real breakthrough of Artificial Intelligence emerged. Taking full advantage of the growing demand for AI technologies and high-performance computing, NVIDIA became the star of the show at the show in the first half of 2024.
Below you will find the price movement as of January 1, 2024, plotted against the AEX. NVIDIA experienced a huge rise in the first half of the year. The fine-performing AEX ( red line) is dwarfed by NVIDIA's performance. 
So much for the history. Much more important is what you as an investor can expect from NVIDIA's stock price. To do this, we first examine the company's current situation and then, based on (technical) analysis, determine the expectation of the stock price.
Current situation NVIDIA
In October 2024, NVIDIA will remain a dominant player in the technology sector, mainly thanks to explosive expansion in its data center division and the introduction of its "Blackwell" GPUs. These chips, mainly designed for AI applications, continue to experience high demand, resulting in substantial revenue generation. The Blackwell series is expected to surpass sales of previous Hopper chips by the first quarter of 2025, due to growing demand for generative AI solutions.
Despite these successes, NVIDIA's stock experienced a solid 35% correction over the summer and some volatility in September. The correction is a healthy move after a rise of about 200%.
NVIDIA has also had some challenges, such as problems with the production of its Blackwell chips, but these have been resolved and production is scheduled to begin in the fourth quarter of 2024.
In addition, tension in the Middle East is increasing. In times of geopolitical tension or war, the demand for technology for defense and cybersecurity often rises. NVIDIA's expertise in AI and GPUs can be attractive in such a context to governments and companies that need advanced data analytics or autonomous systems. This could start to give a boost to the stock price.
What is the expectation of NVIDIA's stock price?
The stock price at the time of writing is around USD 132. Of great importance is that the price closes above USD 141. From that level, we can expect NVIDIA to continue the strong uptrend and advance to the next price target of USD 225. As long as the price does not break out above USD 141, we may even expect a temporary decline to around USD 95.
For the long term, the stock has very high potential and the price target is USD 300.
Below is NVIDIA's chart from the summer of 2023 with the most likely scenario plotted.
Conclusion
NVIDIA has experienced tremendous hype in the first half of 2024 and is up 200%. The hype has a correction and last summer the price has corrected healthily.
Currently, the price is on breakout for the next sprint from USD 142,- to USD 225,-.
Wait to buy until the breakout above USD 141,- on closing price is realized. Until then, there is still the possibility of a sideways pattern that could drop to around USD 95. From that level, buying opportunities will start to arise again in the future.
We are positive about the future of NVIDIA. On November 14, the next figures will be released and we will see whether the expected success is already occurring.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
