Thanks to a mix of concerns from its exceptionally high price-to-earnings (P/E) ratio and the broader stock market slump arising primarily from the weaker-than-expected July employment report, the future of Nvidia (NASDAQ: NVDA) shares appears less certain than at almost any point since the start of 2024.
One analyst, Wedbush’s Dan Ives, believes that the highly anticipated earnings report – scheduled for August 28 – will prove not only an exciting event but also a ‘drop the mic moment’ for Nvidia.
Indeed, should the semiconductor giant meet – and particularly if it exceeds – expectations, it is likely that the stock’s recent struggles in the market, which even saw it drop below $100 in August for the first time since May- once the June stock split is taken into account – will end.
Nvidia set to regain its rally after releasing Q3 earnings report
Looking at Nvidia historic performance, it is likely that it will indeed impress with the upcoming report as it has managed to beat earnings-per-share (EPS) estimates in four of the four previous quarters. Additionally, should it meet the forecasts of an EPS $0.59 it will demonstrate its growth is continuing decisively, given that Nvidia reported $0.25 in the same quarter one year earlier.
Despite the blue-chip chipmaker’s recent stock market decline, Dan Ives is far from the only expert bullish about Nvidia’s future. NVDA shares boast a ‘strong buy’ rating on the stock analysis platform TradingView with as many as 47 out of the 61 ratings assigned in the last three months ranking it as such.
NVDA stock rating. Source: TradingView
Furthermore, 9 analysts believe the semiconductor giant to be a ‘buy,’ only 5 remain ‘neutral,’ and none believe that selling is the right move. On average, NVDA stock is expected to rise 33.45% to reach $139.79 in the coming 12 months.
Nvidia stock price chart
Finally, despite Nvidia shares being in an apparent freefall in the last 30 days, having declined as much as 17.67% within the time frame, it is worth pointing out that the correction – driven both by fears the stock may be overvalued and the broader stock market slump – has hardly put a dent in the company’s year-to-date (YTD) rise which amounts to, in the premarket on Monday, August 12, 119.71%.
NVDA stock YTD price chart. Source: Finbold
The rise becomes even more impressive once Nvidia’s stock price chart is zoomed out further, given that it has risen 141.89% in the last 12 months and went from about $14 per share at the start of the artificial intelligence (AI) boom in late 2022 to $105.79 at press time.
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