Nvidia Stock Price Forecast as Jensen Huang Urges Buying the Dip in Tech

Key Insights

• Nvidia stock price rose in the pre-market session.
• Jensen Huang, the company’s CEO, recommended buying the dip in tech stocks.
• The company has some solid fundamentals that will help it rebound.

Nvidia stock price rebounded in pre-market trading as investors reacted to fresh comments from Chief Executive Officer (CEO) Jensen Huang and growing interest in buying the recent dip. NVDA rose to $210 from last week’s close of $205. The rebound came as investors assessed whether the recent correction created a buying opportunity.

Jensen Huang Urges Investors to Buy the Dip

Global technology stocks have declined in recent days following Broadcom’s latest earnings report. The company reported that first-quarter revenue rose 48%, while revenue from artificial intelligence (AI)-related products increased by more than 140%.

Broadcom also issued strong forward guidance. However, investors appeared to have expected even stronger projections, triggering a selloff in the stock. The weakness spread across the broader technology sector, affecting companies such as Nvidia and Advanced Micro Devices (AMD).

Speaking this week, Huang said investors should consider buying the dip. He argued that the AI investment cycle remains intact, with major companies continuing to increase spending on infrastructure and computing capacity.

For example, Alphabet, the parent company of Google and YouTube, recently raised $85 billion to support AI investments. According to the Financial Times, Meta Platforms is also considering raising a similar amount to fund its AI expansion plans.

More importantly, many companies operating in the AI industry are generating substantial revenue. That differs from the dot-com era, when many high-profile technology firms struggled to produce profits. Recent reports indicated that Anthropic’s revenue could more than double in the second quarter compared with the first quarter, reaching an annualized run rate exceeding $10 billion.

For example, Alphabet, the parent company of Google and YouTube recently raised $85 billion to boost its AI investments. According to the Financial Times, Meta Platforms is also considering raising a similar amount to fund its AI investments.

Nvidia’s Business is Firing on All Cylinders

The most recent numbers showed that Nvidia’s business was firing on all cylinders, helped by the robust demand of chips by global companies.

Its results revealed that its revenue jumped by 85% in the first quarter to over $81 billion. It is rare for a company that was established in 1993 to experience such strong revenue growth.

The management believes that the company has more room to grow in the foreseeable future. Its second-quarter revenue is expected to come in at over $91 billion, a figure that analysts believe is conservative. The company will likely make over $400 billion in revenue this year and over $550 billion next year.

Nvidia has some notable growth catalysts ahead. For example, it recently launched Vera, its new line of central processing units (CPU). This is expected to be a big business in the future, with Huang predicting that it will make over $200 billion over time.

Nvidia also has a large market share in other industries. Its solutions are widely used in the automotive industry, where it offers physical AI. Some of its top automotive clients are Mercedes-Benz, Volvo Cars, General Motors, and Jaguar Land Rover. Most recently, Jane Street said that it will use Nvidia chips in its upcoming data centers.

Analysts are optimistic that the Nvidia stock price will rebound. The average estimate among analysts is that it will jump to $305, up sharply from the current $205.

NVDA Stock Price Technical Analysis

The daily chart shows that the NVDA share price has pulled back in the past few weeks. It has dropped from a high of $236 to the current $215.

The stock has recently dropped below the important support level at $212, its previous all-time high. On the positive side, it remains above the Major S/R Pivot Point of the Murrey Math Lines. It also remains above the 50-day Exponential Moving Average (EMA).

Therefore, the stock will likely rebound and possibly retest the year-to-date high of $236. A move above that level will point to more gains, potentially to the psychological level at $250.

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