Shares

Price target for Nvidia raised, but the stock is overbought in the near term

Russell Shor Written by Russell Shor
  • NVDA.us
    (${instrument.percentChange}%)

Nvidia CEO Jensen Huang, at the World Government Summit in Dubai, said that shifts to accelerated computing are likely to continue and that countries need to build on their AI infrastructure. In an interview Huang said that "There's about $1 trillion worth of installed base of data centres around the world. And over the course of the next four or five years we'll have $2 trillion worth of data centres that will be powering software around the world, and all of it's going to be accelerated."

Nvidia's share price concurs with the company now trading at $722, having increased by almost 50% year-to-date. Melius Research Analyst Ben Reitzes has raised his target for Nvidia from $750 to $920 based on a PE of 30 times forward earnings ending fiscal year 2027. That is a 27% premium from current levels.

FactSet suggests that Nvidia will report $59.0 billion in revenue and earn $12.36 per share for the fiscal year that just ended. The company will release its results on Feb. 21.

Why Trade Shares with FXCM?

  • $0.00 Commission*
  • Mini Shares - Fractional Share Trading with minimum trade sizes of 1/10 of a share.
  • Low Margin Requirements

Open Account

Technically, Nvidia is running hot, with its RSI overbought at levels over 80 (green rectangle). This suggests that the stock will at least need to pause for a breather before resuming its uptrend. Given the strong gains this year, profit-taking may be looming and the results may be a catalyst here.

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Learn More
Disclosure
*

When executing customers' trades, FXCM can be compensated in several ways, which include, but are not limited to: spreads, charging commissions at the open and close of a trade, and adding a mark-up to rollover, etc. Commission-based pricing is applicable to Active Trader account types.

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.