NVDA adds further ground afterhours



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  • Goldman pushes NVDA price target to $800.
  • Nvidia stock reaches new all-time high just under $700.
  • ISM Services PMI arrives hot on Monday, reducing chance of March rate cut.
  • Goldman raises 2025, 2026 earnings outlook by +20% at Nvidia.

 

Nvidia (NVDA) stock keeps producing new records afterhours. Shares of the favorite growth stock have added 0.5% in Monday's post-market, lifted to yet another record high of $696.74.

Nvidia stock shocked the market on Monday after it launched an offensive in the face of a broad market sell-off. NVDA stock reached a new all-time high in the morning's regular session at $694.97 after a Goldman Sachs analyst raised the semiconductor's price target by 29%. The leading chip designer saw its share price close up just below the intraday high at $693.32 for a gain of 4.8%.

Nvidia’s rally was more surprising due to it contrasting sharply with a market in freefall. The S&P 500 sold off alongside the NASDAQ and Dow Jones as bets on an interest rate cut in March dimmed even further. The Dow Jones lost 0.7%, while the S&P 500 receded 0.3%. The NASDAQ Composite lost 0.2%.

The market's negativity was due to the ISM Services Purchasing Managers Index (PMI) for January, which arrived much hotter than expected. The index showed expansion in the services sector at 53.4, well above the 52.0 consensus or the 50.5 reading from December.

Nvidia stock news: New NVDA price target at Goldman clocks $800

Goldman analyst Toshiya Hari said on Monday that prior worries concerning reduced server demand in the back half of 2024 were now looking like a mirage. Nvidia’s artificial-intelligence-focused server chips are in fact seeing improved demand as GPU supplies normalize, Hari said.

With added visibility through the first half of 2025, about 18 months ahead, Hari collectively raised his 2025 and 2026 earnings per share forecasts by more than 20%.

Because of this adjustment to earnings, the Goldman analyst raised the bank's price target for Nvidia stock to $800. This amounted to a 29% revision from the prior $620 price target. The average price target for NVDA stock on Wall Street is $680.

In addition to large orders of server chips already scheduled in advance from the world’s biggest hyperscalers, such as Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL), Hari predicts that heavy demand will stem from product cycles involving the B100 and H200 chips. 

The B100 is a next-generation compute GPU product for AI and high-performance computing (HPC) applications. The H200 GPU replaces the H100 with 40% more memory bandwidth and 80% more memory capacity.

 

Semiconductor stocks FAQs

A semiconductor is a term for various types of computer chips. Officially called semiconductor devices, these computer chips rely on semiconductor materials like silicon and gallium arsenide to process the electrical current that produces the modern world of computing. They come in many shapes, sizes, enhancements and configurations such as diodes, transistors and integrated circuits to more complicated applications like DRAM memory, simple processors and even GPUs.

First, there are the pure chip designers, such as Nvidia, AMD, Broadcom and Qualcomm. These companies use sophisticated software to design and test chips. Second, there are the equipment manufacturers that provide the machines necessary to build computer chips. These include ASML and Lam Research. Then, there are foundries that manufacture the chips. These include Taiwan Semiconductor and GlobalFoundries. Last of all are the integrated device manufacturers who design their own chips and additionally manufacture themselves. These include Samsung and Intel.

It is the observation that the number of transistors in an integrated circuit doubles every two years. The “law” is named after Gordon Moore, who founded Fairchild Semiconductor and later Intel. The doubling is possible due to the shrinking size of process nodes or parts in the computer chip. In 1971 the advanced commercial manufacturing had reached 10 microns in width. In 1987 semiconductor technology had advanced to 800 nanometers in width. By 1999, this process had moved to 180 nanometers. By 2007, the size had dropped to 32 nanometers, and this fell all the way to 3 nanometers in 2022, which is close to the size of human DNA.

In 2022, the global semiconductor industry had revenues just under $600 billion. In total, the industry shipped 1.15 trillion semiconductor units in 2021. The leading nations involved in the semiconductor supply chain are Taiwan, the United States, China, the Netherlands, South Korea, Japan and Israel.

Nvidia stock forecast

Based on the weekly chart below, Nvidia stock has been mounting a challenge toward its long-term topline resistance. This trendline stems from the August 2020 high near $147 and then sees its second peak at $346 in November 2021. 

Drawing this trendline out, it would appear that NVDA is closing in on a retouch more than two years later somewhere around $715. 

The 13-week Simple Moving Average (SMA) waxes near $536, and $500 is the most recent period of sustained resistance, meaning that it may turn into long-term support down the line. With the Relative Strength Index (RSI) well into overbought territory, expect NVDA to consolidate in the present area shortly.

NVDA weekly chart

 



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