Nvidia Stock Nears Key Level as Rosenblatt Lifts Target Following $150 Billion Buyback

Nvidia stock continued rising and is now nearing its make-or-break level, helped by its numerous catalysts, including its massive buyback and the ongoing artificial intelligence (AI) bom. NVDA rose to $231, a few points below the all-time high of $236, with analysts predicting that it has more gains ahead.

Nvidia Stock is Rising as Analysts Predict More Upside Possible

NVDA stock has jumped by 22% from its lowest level in July, and analysts believe that it has more upside to go. In a report on Tuesday, Rosenblatt’s Kevin Cassidy upgraded the company’s rating to buy and the target to $390. If it hits this target, it will be a 70% surge from the current level, a move that would bring its market capitalization to over $9.48 trillion.

The statement came after the company announced a big $150 billion buyback program. This announcement brings the remaining authorization to about $235 billion, the highest repurchase program in history. Nvidia’s share repurchase programs have led to a significant drop in outstanding shares to 24.15 billion from the 2022 high of 25 billion.

Share repurchases have helped to boost a company’s earnings-per-share by reducing those in circulation. In this case, its earnings-per-share has jumped to $2.4675 from 2022’s $0.1199.

Nvidia’s management likely decided to launch the big buyback because of its cheap valuation. Data shows that the company is a bargain in all metrics. For example, its forward price-to-earnings ratio has moved to 24, much lower than the five-year average of 42.

Nvidia’s forward multiple is also lower than other companies. For example, AMD, a top competitor, has a forward multiple of 80, while Marvell Technology has 62. Lumentum has 44, while other top companies in the Magnificent 7 have higher numbers.

Nvidia’s Growth to Continue Despite Risks

In addition to Rosenblatt, other Wall Street analysts have maintained a highly bullish on the company. Piper Sandler‘s David O’Connor initiated with a target of $300, while Needham’s Quinn Bolton has a similar target. Citi’s Atif Malik has a target of $315.

These analysts have pointed to the company’s strong revenue growth, which they expect will accelerate in the near term. In the recent earnings report, the company estimated that its 2027 revenue will jump by over 70%, exceeding analysts’ expectations.

Still, the company faces some major risks. For example, DeepSeek has unveiled its chip in collaboration with Huawei. Other top companies in the tech industry are launching their ASIC chips. This includes firms like Amazon, Google, Microsoft, and Meta Platforms. Chinese companies like MetaX, Cambricon, Moore Threads, and Baidu have built their chips.

The other risk facing Nvidia is fears that the artificial intelligence industry is in a bubble. Some of the top reasons cited are its circular investment and the ongoing losses by companies like OpenAI and Anthropic.

Nvidia Stock Price Technical Analysis

The weekly chart shows that NVDA stock has been in a bull run for years. This rally has not been in a straight line. Instead, it has formed several pullbacks, such as the one that happened between May and July.

The stock has remained above the ascending trendline that connects the lowest swings since April last year. It has always failed to move below this trendline.

At the same time, the stock has remained above the 50-week moving average, which is providing it with a strong dynamic support. Therefore, a move above the $236 resistance level will mean that bulls have prevailed, leading to further gains. If this happens, the stock may jump to $250 and above.