Nvidia Stock Forecast – Buy, Sell or Hold?

Jitanchandra Solanki
11 Min read

Since the pandemic, US chipmaker Nvidia’s share price has been one of the best performers. That is until it reached a record high of $346.47 on 22 November 2021, halting a near 670% rally. The stock did not escape the stock market crash of 2022 and fell as much as 40% by the end of January.  

This has piqued the interest of a lot of investors who are now researching the Nvidia stock forecast for this year and the next five years. Many investors are now much more interested in what the analysts have to say about Nvidia (NVDA) too.  

In this article, we answer many of these questions and go through how to invest in the stock with competitive commissions.  

Nvidia Stock Forecast 

What is the prediction for Nvidia stock? According to the 30 analysts polled by MarketBeat, there are currently 26 buy ratings on the stock, 3 hold ratings and zero sell ratings. Of these 30 analysts, the average price rating for the stock is $332.71, with the highest price target at $400.00 - issued this year by Rosenblatt Securities.  

Source: MarketBeat, 24 February 2022 

Even though there are more buy ratings for the Nvidia share price forecast, it does not mean the share price will go up immediately. However, at the time of writing Nvidia’s share price was trading around $228.50.  

This means the stock is still trading below the average price target for the Nvidia stock price forecast. But what is the Nvidia stock forecast for this week, or the Nvidia 5 year stock forecast? To understand where the company could be trading in the long term, let’s first take a look at the fundamentals of the Nvidia stock forecast.  

 

Nvidia Stock Price Forecast & History 

Nvidia has long been a darling among investors and hedge funds alike. More than 63% of the stock is currently owned by institutions with over $127 billion of institutional flows into Nvidia over the past 12 months and only $13 billion of outflows.  

The company has been high on investors’ watchlists as it is a leader in providing graphic processing units that are used in gaming, electric vehicles and mining cryptocurrency. During the pandemic, technology stocks rallied the most as consumer demand for electronics and online working surged.  

However, even though the company has recently posted good earnings, it did not escape the stock market crash and market panic at the beginning of 2022 which has seen the stock fall nearly 40% from its record high in November 2021 to the end of January 2022.  

Nvidia Stock Earnings Forecast – What is Predicted by Analysts? 

In Nvidia’s fourth-quarter earnings report for 2021, both earnings per share and revenue figures beat analyst expectations.  Sales came in at $7.64 billion versus an expected $7.42 billion, up 53% year on year.  

What had investors most excited is the fact Nvidia CEO Jensen Huang said that the company is now seeing “exceptional” demand for its chips which are used in gaming, electric vehicles and artificial intelligence.  

The company’s earnings per share came in at $1.32 versus an expected $1.22, up 69% year on year. So, what is the Nvidia stock earnings forecast for 2022 and 2023? 

Source: MarketBeat, 24 February 2022 

The chart above shows the Nvidia stock earnings forecast for 2022 and 2023. While it doesn’t predict the Nvidia stock forecast 2022 or Nvidia stock forecast 2023 it can provide a good indicator of what analysts are expecting.  

The blue line highlights Nvidia’s earnings history. The grey highlights the range of Wall Street’s analysts’ earnings estimates for each quarter. It’s clear to see that most analysts are forecasting lower earnings per share for the next few years.  

This provides an interesting backdrop as forecasts are for lower growth. If Nvidia manages to beat forecasts, then analysts' ratings may start to turn more positive and therefore could attract more investors to the stock – making Nvidia a stock to watch.  

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Nvidia Stock Forecast Analysis – Technical and Fundamental 

Is Nvidia stock a buy? Will Nvidia stock keep going up? Why is Nvidia stock going down? These are common questions from beginner investors which can be difficult to answer. A more important question is where Nvidia stock could be trading in the long term. This helps to deal with any short term fluctuations in the market where the price will go up and down.  

From a fundamental analysis perspective, the recent earnings report shows that Nvidia is growing despite the challenges recent supply disruptions due to Covid have brought. More importantly, its earnings report shows that the demand for its chips in the artificial intelligence sector is growing rapidly.  

Source: Admirals MetaTrader 5, NVDA, Weekly - Data range: from 22 Apr 2018 to 24 Feb 2022, performed on 24 Feb 2022, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

The chart above shows the Nvidia share price forecast over the last several years. Before the pandemic, the stock was struggling and declining during 2018. However, since the pandemic in February 2020, the stock price has surged higher.  

The rally ended in November 2021 and the stock price has fallen significantly. But, this was in line with the broader market in which the Nasdaq 100 index also fell. Investors were concerned about higher interest rates affecting borrowing costs which tech companies require for growth.  

But the sell-off has now brought the price to some interesting price levels where some investors may consider Nvidia to be an undervalued stock.  

Nvidia Stock Price Forecast Timing: When to Buy or Sell? 

Fundamental analysis is the process of analysing company information such as product launches, sales, earnings, etc. Technical analysis is the processing of analysing historical price movement which can sometimes give clues on where price could move to next.  

Using a combination of fundamental analysis and technical analysis can be effective when investing over the long term.  

The Technical Insight Lookup indicator which can be found in the Admirals Premium Analytics section provides real-time, actionable technical analysis trading ideas on thousands of stocks from around the world.  

Source: Admirals Premium Analytics, 24 February 2022 

The screenshot above shows a search for Nvidia’s share price forecast from the Technical Insight Lookup indicator. The list is categorised into short-term (2 – 6 weeks), intermediate-term (6 weeks – 9 months) and long-term (more than 9 months).  

At the time of writing, it is currently showing 14 active technical events that are taking place on the stock. You can click on any one of the technical events and read more about what is happening, with a picture explaining the technical setup.  

There is also extra information regarding support and resistance levels and potential stop price levels, shown at the bottom left. This is a great way to learn more about technical analysis and to aid in your current decision-making process.  

You can access this tool from the Admirals Premium Analytics section! 

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How to Invest in Nvidia Stock 

If you are interested in investing in Nvidia shares then you can do this from a variety of different accounts that Admirals has to offer: 

  • Invest.MT5 Account. This account allows you to buy shares and ETFs (Exchange Traded Funds) from 15 of the largest stock exchanges in the world. 
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    • Trade long and short! With CFDs, you merely speculate on the price movement of the market rather than owning the underlying shares. 
    • Trade on margin! For retail traders, you can open a position in Nvidia with just 20% of the full investment needed to be held as margin. This can amplify profits and losses so be careful!
  • Demo Account. You can open a demo account free of charge and test out all of the features for yourself until you are ready to go live.   

Regardless of which account type you open, you will have instant access to the world’s most popular trading platform MetaTrader 5. This can be used on desktop, web or mobile.  

Why Invest in Nvidia Shares with Admirals? 

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 INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest. 
  4. The Analysis is prepared by an independent analyst (Jitan Solanki, hereinafter “Author”) based on personal estimations. 
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis. 
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