Wall Street's most optimistic forecast: NVIDIA can rise another 21%
Sasquahanna Bank analyst Chris Rolland raised NVIDIA's target stock price from $145 to $160 in a recent report, with a new target price offering a 21% upside from last Friday's closing price, with a forward P/E ratio of 51.5 times
After a 165% surge this year, can "AI leader" NVIDIA continue to lead the frenzy of US chip stocks? Boldly predicted by Wall Street analysts, not only NVIDIA is expected to rise by another 1/5, but other components of the Philadelphia Semiconductor Index are also likely to follow suit.
Analyst Chris Rolland from Susquehanna Bank recently raised NVIDIA's target price from $145 to $160 in a report, with a new target price offering a 21% upside from last Friday's closing price, with a forward P/E ratio of 51.5 times.
Rolland stated:
Although this valuation is significantly higher than the industry average of about 28.5 times, we believe it is reasonable as NVIDIA can seize the booming opportunities in the end market.
Year-to-date, NVIDIA has accumulated an approximately 172% increase. FactSet data shows that despite Rolland's bullish view on NVIDIA's potential 21% increase in stock price, his target price has now become the highest target price on FactSet. Although over three-quarters of analysts have a buy rating on NVIDIA stock, the average target price is actually lower than last Friday's closing price, possibly because some analysts have not updated their forecasts. In the past month, NVIDIA's stock price has surged by 40%, and many analysts have not had time to adjust their target prices.
FactSet data also shows that looking at all the components of the Philadelphia Semiconductor Index, there are three stocks with at least a 23% upside from the average target price set by analysts.
These three stocks are Lattice, Rambus, and Intel, all of which have been losers in the stock market this year. Lattice has fallen by 13% year-to-date, Rambus by 18%, and Intel by 39%.
In terms of ratings, analysts are optimistic about Lattice and Rambus. According to FactSet data, 71% of analysts have a "buy" or equivalent rating on the stocks of these two companies. The average target price suggests a 26% upside for Lattice and 25% for Rambus.
For Intel, analysts' views are more divided. Although the average target price implies a 23% upside, only 28% of analysts are bullish on the stock. Among the 47 analysts tracked, 13 have a buy rating, 30 have a neutral rating, and 4 have a sell rating