NVIDIA's hot start in 2024, will it make another 19% surge this year?

Zhitong App learned that NVIDIA has achieved its strongest start to the new year ever in 2024, continuing its strong momentum with a nearly 240% increase in stock price in 2023.

After a 10% increase this month, the market value of this AI giant has increased by approximately $128 billion, an unprecedented market value growth in the first nine trading days of the year.

This is undoubtedly good news for the bulls of NVIDIA and also indicates that there is still development momentum in the field of artificial intelligence, at least for this company, which is considered one of the early biggest winners. NVIDIA's performance this year has also easily surpassed the broader market and other stocks in the so-called "Big Seven". This makes it a highlight, as the S&P 500 index has stagnated near its historical high amid doubts about corporate profits and the timing of the Fed's interest rate cuts.

Shana Sissel, CEO of Banrion Capital Management LLC, said, "In my opinion, NVIDIA is the best." She added that NVIDIA dominates the market, has strong customer relationships, and is growing rapidly. "It's hard to find many flaws in this story."

In terms of gains, NVIDIA had already started the year with better performance last year and achieved a record rebound. However, this gain came after the stock's market value halved in 2022. Analysts studying NVIDIA expect the stock's average target price to be close to $650 in the next 12 months, which means that this company with a market value of over $1.3 trillion will have approximately 19% upside potential.

The International Consumer Electronics Show this month also solidified the confidence of NVIDIA stock supporters. The company launched three new desktop-level GPUs, which will enable computer users to better utilize artificial intelligence on their PCs. Last week, Colette Kress, the company's CFO, reiterated CEO Jensen Huang's statement that the company expects to continue its growth until 2025, boosting the company's stock price.

Piper Sandler & Co. analyst Harsh V. Kumar, in a report on January 11th, wrote, "NVIDIA has expressed confidence in end demand and indicated that supply will increase in each quarter this year. For us, this indicates a high level of confidence in our backlog and order patterns for the entire year of 2024."NVIDIA is expected to announce its fourth-quarter earnings report next month. Compiled data shows that analysts predict revenue growth of approximately 230% in the fourth quarter, following a growth of about 206% in the third quarter.