Nvidia Stock Forecast as Raymond James Sees a 67% Surge

Nvidia stock has come under pressure this week, moving from the month-to-date high of $227 to the current $208. This retreat will be tested later this week as the company publishes its financial results as Raymond James boosts its target price.

Raymond James Boosts Nvidia Stock Target

Top analysts following Nvidia have remained highly bullish on the company. In a note, analysts from Raymond James boosted their target to $352 from the previous $330. This target is about 67% from the current level.

Raymond James, a top company valued at $40 billion, cited the company’s entry into the CPU industry. The analysts see the business having a strong growth trajectory because of the ongoing AI agent trend. Eventually, they see it becoming 5% of the total revenue, with the company becoming a major competitor to AMD and Intel.

In addition to this, the analysts noted that the company’s valuation makes it a bargain. Despite its strong revenue, profits, and free cash flow metrics, Nvidia trades with a forward price-to-earnings ratio of 23, much lower than the five-year average of 43.

The same is true with its free cash flow valuation metric, with the forward price-to-free cash flow falling to 23 from the five-year average of 45. These numbers mean that investors see some risks that may affect Nvidia’s business.

Some of the potential risks are the circular investment approach, where it is investing in its clients, which then use the funds to buy its chips. There are also concerns that the AI bubble may burst in the near future. One of the top people warning about this is Michael Burry, who accurately predicted the Global Financial Crisis.

Other top analysts tracking Nvidia have a bullish outlook of the stock. For example, MarketBeat data shows that the average estimate among analysts is $308, up by 45% from the current level. Analysts from companies like Rosenblatt Securities, Cantor Fitzgerald, DA Davidson, BMO Capital Markets, and RBC believe that the stock may jump to over $300.

Nvidia Earnings Expected to be Strong

The next important catalyst for the NVDA stock price is its upcoming earnings report that comes out on Wednesday this week.

Nvidia has a long history of beating and raising estimates of its revenues and earnings. In this case, there is a likelihood that its revenue doubled to over $93 billion, with its third-quarter guidance being $106 billion. Analysts expect the two numbers to be $92 billion and $103 billion.

There are no signs that the company lost momentum. For example, most of its suppliers like SK Hynix and TSMC, published strong financial results recently. At the same time, its top clients like Microsoft, Google, and Amazon also released strong financial results and boosted their guidance.

In addition to its revenue and earnings growth, the company will likely boost its share buybacks and dividends in a bid to boost its returns. In its last earnings reports, the company announced a $80 billion in share buybacks. It may justify its cheap valuation to announce a bigger repurchase program.

Nvidia Stock Price Technical Analysis

The daily chart shows that the NVDA stock price has slumped in the past few days. It moved to a high of $227 to a low of $207 on Monday. Now, however, there are signs that the stock is slowly forming a harami candlestick pattern. Harami is characterized by a big bearish candle that is followed by a small bullish one. It is a Japanese word meaning a pregnant woman.

The stock has also filled the fair value gap that was formed a few weeks ago. It remains above the 50-day Exponential Moving Average (EMA). Therefore, the most likely scenario is where it bounces back and retests the resistance at $227.