Nvidia (NASDAQ: NVDA) stock is more than three times as expensive as it was a year ago at its present share price of $888. The exact increase is 238%, and the current selling price is 37 times trailing sales, which seems incredibly high.
Still, according to the analysts at Raymond James, $888 isn't a crazy price to put on Nvidia shares. The stock price of Nvidia can reach $1,100 in just one year.
Will $888 get you Nvidia stock? Nvidia stock is down 7% from its three-week peak, when it was close to $1,000, even though it's three times what it was a year ago. Why? Because of its anticipated fourth-generation Blackwell chips, which are four times as powerful as Nvidia's current H100 chips,
analysts are worried that AI clients may delay purchasing Nvidia's current H100 chips. This might lead to Nvidia being a victim of its own success.
Rest assured, Raymond James is here to help. According to RJ, who has a strong buy rating on the stock, there is still a shortage of AI chips on the market. Buyers will be lucky to receive H100s today, and they aren't going to wait around for Blackwells tomorrow. Nvidia should be able to sell whatever artificial intelligence chip it can make, regardless of whether it's an H100, H200, or B100/200.
This may continue until its rivals begin to play catch-up. Rather than foreseeing a slowdown, the majority of analysts estimate that Nvidia's sales will more than quadruple, reaching $196.3 billion in 2028, after having more than doubled to $60.9 billion this year
A rate of 49% growth in sales each annum is what that amounts to. Earnings growth projections out to 2028 are even more astounding, coming in at 92% annually.
Despite how ridiculous that sounds, Nvidia stock can be a bargain at 37 times sales and 76 times earnings today.
stay turned for development