NVIDIA to Rise by Another 50%? Analyst Trends Say Yes

As spectacular as NVIDIA’s (NASDAQ: NVDA) price rise has been, the analysts' trends suggest it is far from over. In fact, the trends, which include increasing coverage, firming sentiment, and upward price target revisions, are as strong as they’ve ever been.

NVIDIA’s coverage is among the most robust in the marketplace, with 48 tracked by MarketBeat, the sentiment firmed to Buy from Moderate Buy, and the price target indicates a 15% stock price increase as of the end of October. 

16% is a far cry from 50%, but the trend matters. Up nearly 60% in the preceding 12 months and 10% in the preceding 30 days, analysts' price forecasts provide support for the market and serve as an incentive, with recent targets pointing to $320, more than 65% above late October trading levels.

Assuming the Q3 results, which are expected to be reported on Nov. 19, are strong as some analysts believe, the trend of revisions is likely to persist for at least one more quarter and possibly several additional quarters. 

NVIDIA’s Aggressive Q3 Forecast May Prove to Be Overly Cautious

The latest update from JPMorgan Chase analysts highlights NVIDIA’s potential for outperformance in Q3. Although the bar has been set high, with 87% of the revenue and earnings revisions increases since the last report, JPMorgan believes there is conservatism baked into the forecasts. Causes for concern include funding for the large datacenter projects announced since June, competition, market dynamics, and execution. 

Regarding competition, market dynamics, and execution, the Wedbush supply-demand forecast issued in August suggests that NVIDIA must deliver the chips to sell. Wedbush analysts view supply outpacing demand by ten to one, a ratio sufficient to sustain NVIDIA’s robust growth outlook and more.

JPMorgan’s forecast of an industry-wide 50% compound annual growth rate (CAGR) aligns with its projections, and both may be underestimating long-term demand for AI computing power. 

Saudi Arabia is just one reason why. Its sovereign Public Investment Fund is heavily investing in AI, aiming to establish itself as an AI hub and reflecting a global trend. The key point is that AI hubs are being developed in dozens of countries worldwide, including both government, public, and private sectors.

The size and scope of these hubs will increase over time, demanding more computing power with each generation, driven by an expanding world population, a gentrifying middle class, and the broadening use of digital by industries, businesses, and individuals. 

High Expectations Set NVIDIA Market Up for Volatility 

The expectations for NVIDIA’s Q3 results are high, setting the market up for volatility. Aside from the revision, which is lifting expectations daily, analysts expect growth to accelerate sequentially and year-over-year (YOY)—a mind-boggling feat, given the past four years. Although the consensus assumes YOY growth will be flat compared to the previous quarter, the revision trend points to the high end of the range, suggesting that the market expects outperformance.

NVIDIA can produce a better-than-consensus report in this scenario and still not give the market everything it wants. It will likely result in profit-taking and consolidation, if not a deep correction. 

NVIDIA trades at a premium in 2025, and its market could easily enter a consolidation or correction if the results are not strong enough. Trading at nearly 42x earnings, the valuation is approximately 33% above normal for a growing, high-quality, cash-producing, blue-chip quality tech stock, and needs good news to support it. 

However, the premium is justified by significant long-term growth, so a price correction or other price weakness would be a buying opportunity, not a signal to sell. The long-term forecasts assume NVIDIA will grow earnings at a high-teens CAGR through the middle of the next decade, putting its valuation at 10x relative to the 2035 estimate, and are likely to be low. A price increase to align NVIDIA’s stock with blue-chip tech peers could be worth 200% or more. 

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The article "NVIDIA to Rise by Another 50%? Analyst Trends Say Yes" first appeared on MarketBeat.