1 Wall Street Analyst Thinks Nvidia Stock Is Going to $985. Is It a Buy Around $777?

In an Nvidia (NASDAQ: NVDA) research note published on Wednesday, Tigress Financial analyst Ivan Feinseth maintained the firm’s “buy” rating on the market-leading artificial intelligence (AI) company. More strikingly, he increased his one-year price target on the stock from $790 per share to $985.

In his coverage, Feinseth stated that Nvidia looks poised to retain dominance in advanced graphics processing units (GPUs) and accelerated processing technologies that are powering data centers and the AI revolution. In addition to powerful demand tailwinds in the data center segment, Tigress Financial also expects that Nvidia’s gaming business will see strong growth as users continue to value higher levels of visual fidelity.

With Nvidia currently trading at roughly $777 per share, should investors follow Feinseth’s recommendation and buy the red-hot AI stock?

Investors can still score big profits with Nvidia stock

Tigress Financial’s new price target for Nvidia suggests it could climb an additional 27% in the near-term, even though the GPU leader has already more than tripled in the past year.

But there are good reasons to think it can continue to climb higher. As Feinseth stated in his recent note on the stock, AI is at a tipping point, and Nvidia is at the forefront of this incredible technological transformation. With AI poised to have major impacts across every industry imaginable, the semiconductor company could enjoy sustained tailwinds for its revenue and cash flow growth.

After growing sales 265% year over year to close out fiscal 2024, Nvidia is guiding for revenue in its first quarter to grow about 234% to $24.0 billion. The company’s hot streak isn’t over yet.

For long-term investors seeking top AI plays, Nvidia stock remains a compelling buy.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Story continues

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.

See the 10 stocks

*Stock Advisor returns as of February 26, 2024

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

1 Wall Street Analyst Thinks Nvidia Stock Is Going to $985. Is It a Buy Around $777? was originally published by The Motley Fool