As Nvidia’s (NASDAQ: NVDA) stock price remains at the center of attention due to its ability to influence the broader technology sector, OpenAI’s latest artificial intelligence (AI) tool has shared insights on how the equity might trade at the end of 2024.
The projected price outlook aligns with a period in which Nvidia is experiencing short-term bullish sentiment, mainly driven by the company’s acknowledgment of significant demand for its chips, as Finbold reported on September 12.
By press time, the chipmaker was valued at $119, rising almost 2% over the past 24 hours. The company’s leverage of the AI boom has driven NVDA to rally nearly 150% year-to-date (YTD).
NVDA YTD stock price chart. Source: Finbold
Indeed, Nvidia’s impressive stock rise has partly contributed to the firm’s ability to reward shareholders consistently through dividends.
OpenAI o1 NVDA stock outlook
For its end-of-2024 stock price prediction, Finbold leveraged OpenAI’s o1 tool, which is meant for complex queries, to analyze factors likely to influence NVDA in the coming months.
According to the AI tool, Nvidia’s stock trajectory will continue to be influenced by the company’s role in serving the AI and machine learning sectors. It noted that as these sectors grow, Nvidia will benefit.
Additionally, the company’s role in supporting cloud computing and big data analytics increases the demand for robust data center solutions, where Nvidia has a strong presence. The tool also highlighted the tech company’s impact on the gaming industry through its GPUs, which will likely contribute positively to the stock.
The OpenAI tool also emphasized monitoring competition in the chip market. Specifically, it noted that Nvidia must remain technologically ahead of its competitors like Advanced Micro Devices (NASDAQ: AMD) through innovations to maintain its market position.
Moreover, the tool stressed the need for consistent revenue and earnings growth, directly impacting investor confidence. Notably, Nvidia has demonstrated strong revenue growth recently, reporting $30.04 billion—a 122% year-over-year increase for Q2 2024. For Q3 2024, the company is targeting approximately $32.50 billion in revenue with an expected gross margin of 75%.
On the downside, the AI model warned that the stock could be affected by economic factors such as a potential recession or supply chain issues.
Although the AI tool did not provide Nvidia’s specific price at the end of 2024, it noted that the stock could trade higher from the current $119 if the company maintains its market share.
Nvidia technical outlook
Meanwhile, stock trading expert Peter DiCarlo noted in a September 13 X post that Nvidia has been following a pattern of higher lows, indicating an overall uptrend. However, it continues to make lower highs, which have prevented a clear breakout. DiCarlo suggested that breaking this pattern would require the stock to surpass the $130 mark, which could trigger a more substantial rally.
“I believe $120 is the ceiling before we see a re-test and possible rejection,” he noted.
In the near term, the expert predicted that Nvidia could rise to the $120–$124 range, an area associated with institutional selling. Historically, this level has triggered sell-offs, so if the pattern holds, NVDA might face another pullback before resuming its upward momentum.
NVDA stock price analysis. Source: Peter DiCarlo
He forecasted a potential dip to around $110–$108 by the end of September, with a breakout likely by year-end. Nvidia could close between $140 and $150, contingent on a solid market catalyst.
The overall bullish outlook for Nvidia is also supported by Bernstein analyst Stacy Rasgon, who, on September 12, maintained an “outperform” rating with a target price of $155.
According to Rasgon, while AI stocks may have paused recently, demand for Nvidia’s chips remains strong, a key catalyst for continued growth.
In this regard, Nvidia investors have little reason to be concerned after CEO Jensen Huang acknowledged the company is facing high demand, creating tension among customers as they question whether the semiconductor giant can fulfill their needs.
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