NASDAQ title NVIDIA share: This is how things could continue for NVIDIA shares in 2024

• NVIDIA shares with big price gains in 2023
• Trend topic AI provides a strong tailwind
• Buy recommendations clearly predominate

The year 2023 will certainly go down as one of the most successful in the history of chip designers. The NVIDIA share has gained more than 148 percent so far in 2023. A new record was also set in November 2023 at $505.47. The price increase is in stark contrast to 2022, when the NVIDIA stock lost almost 50 percent of its value on the NASDAQ, with the tech group, like many other members of the so-called “Magnificent Seven,” suffering from the generally poor mood on the stock markets was drawn.

Artificial intelligence as a massive catalyst for NVIDIA stock

What provided a strong boost in 2023 was the hype surrounding the OpenAI text robot ChatGPT, which ushered in a new era of artificial intelligence. The potential of the technology is considered so high that no company wants to miss the trend and is looking for AI uses. This plays into the hands of the chip giant NVIDIA. Since the increased use of artificial intelligence also requires more powerful semiconductors, the company, as a provider of chip architectures, is considered one of the biggest beneficiaries of the AI ​​boom. It is the company’s H100 and A100 chips in particular that are enjoying strong demand. The H200 chip, which is a further development of the blockbuster H100, is also expected for the second quarter of 2024.

Against the background of NVIDIA’s positive stock development in 2023, investors are now wondering whether NVIDIA shares can go up even further or whether the chip designer’s valuation is already set too high. There are several factors to consider.

Is a new stock split imminent?

NVIDIA shares have already been optically discounted more than five times through stock splits. The last stock split was carried out in 2021 and was announced when the shares were worth $560. Given the current price of the stock at $492.79 (closing price on December 26, 2023), it is therefore entirely possible that another stock split is not too far away. As InvestorPlace argues, the numerous stock splits would once again illustrate the tech company’s path to success in recent years.

Ambitious goals for 2024

NVIDIA itself has already set ambitious goals for 2024. In December 2023, NVIDIA CEO Jensen Huang announced that he wanted to expand in Vietnam with a focus on AI development. The graphics card developer wants to work with the top tech companies from the Southeast Asian country. As Investopedia reports, Huang also showed interest in setting up a second base in Vietnam. The company’s headquarters are in Santa Clara, California.

In addition, NVIDIA announced that it would be launching a number of AI improvements. In a press release from the end of November 2023, the tech group informed about the launch of “NeMo Retriever”, a microservice based on generative AI with which companies can connect customized large language models with company data so that their AI applications can deliver highly precise answers. The first to be made available to this new tool are well-known companies such as SAP, ServiceNow, Dropbox and Cadence.

Wall Street agrees – thumbs up for NVIDIA shares

When it comes to finding out whether an investment in NVIDIA shares is still worthwhile in 2024, a look at Wall Street estimates will help. These paint a clear picture. 42 of the 52 analysts surveyed by FactSet gave the NVIDIA shares a buy rating. In addition, the paper counts seven overweight recommendations and three hold ratings. However, there are no sales recommendations. 46 analysts have also given a price target, which averages $668.11 – which implies an upside potential of 35.57 percent. The lowest price target of $535.00 is still 8.57 percent above the current price.

Looking at chart technology can help

According to Investor’s Business Daily, what can also help in assessing how best to deal with NVIDIA shares in 2024 is a look at the chart technology. Of particular interest here are the resistances and supports in key areas, especially the buy points and moving averages. NVIDIA would have started forming a 10-week double bottom in August 2023 and ultimately marked a buy point at $476.09. In November, the stock passed this point, but then encountered resistance at around $500 after the title had gained around five percent in value. After the publication of the quarterly figures at the end of November 2023, the share price fell, but found support at the 50-day moving average and showed resistance. Shortly afterwards, according to IBD, the paper rose back into buy territory and reclaimed the 21-day moving average.

This type of movement will continue to be monitored in the future in order to find the right moments to buy, sell, hold or adjust the position in NVIDIA shares. What could also help investors decide what to do next with NVIDIA stock is to look at purchases or sales of NVIDIA stock by institutional investors. According to Investor’s Business Daily, this can also be traced based on the change in price and volume in the stock chart. As of mid-December 2023, 113 funds with an A+ rating would have had NVIDIA shares in their portfolio.

Even if the chart technology can help to understand the development of the share over a selected period of time and investors hope to draw conclusions about future development, ultimately only the future will show what will happen to the NVIDIA share in 2024.

Editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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