Portfolio manager outlines Nvidia (NVDA) stock path to $285

As Nvidia’s (NASDAQ: NVDA) share price continues to soar, a portfolio manager believes that the momentum will likely be sustainable in the coming months, with a potential target of almost $300.

As of press time, Nvidia was trading at $133 with daily gains of over 4%. Indeed, recent trading sessions have mainly seen the tech giant gain momentum after clearing the $120 resistance. To this end, NVDA has surged 14% in the past week, and in 2024, the equity is up a remarkable 177%.

Now, the possibility of further rallying is backed by the company’s strong fundamentals, strategic market positioning, and continued demand for its products in key industries, especially in artificial intelligence, Todd Gordon, founder of Inside Edge Capital, said in an X post on October 8.

NVDA’s stock path to $285

Gordon’s technical analysis indicated that NVDA is in a wave-four triangle breakout as part of an Elliott Wave pattern. This breakout signals the potential for upward momentum, setting the stage for NVDA’s price to appreciate $285 by 2025.

He indicated that earnings per share (EPS) for 2025 are expected to be $2.84, representing 46x forward earnings. While this might appear expensive, Gordon argued that the current valuation is justified given Nvidia’s growth trajectory.

What makes Gordon particularly bullish are the conservative revenue expectations for the next four quarters. Analysts are forecasting revenues of $32.9 billion, $36.5 billion, $39.5 billion, and $42.9 billion over the coming year. These estimates, however, may soon see upward revisions due to increased demand in Blackwell, a critical area in Nvidia’s business. According to Gordon, “With Blackwell demand reportedly red hot, the risk for upward adjustment in those revenues is likely.”

Gordon also acknowledged that there is room for Nvidia to correct. However, he noted that with the company ranking as a $3 trillion tech giant, minor concerns about valuation pale compared to the long-term growth potential.

JPMorgan (NYSE: JPM) analyst Harlan Sur backs Blackwell’s potential in 2025. He noted that the chip can support over 100 system configurations, and he believes that Nvidia’s AI and accelerated computing will be vital in sustaining the company’s growth for years.

NVDA’s next $150 target

Based on the recent price trajectory, for Nvidia to attain another high, clearing the $150 spot is the next most-watched target, as observed by Peter DiCarlo. The expert noted that ‘nothing is stopping’ Nvidia from claiming $150 after clearing the $130 zone.

Additionally, analysis by Wyckoff Analytics suggested that the chipmaker is already breaking out after breaching the $130 resistance. In an X post on October 9, the expert noted that Nvidia’s current breakout comes after weeks of consolidation, with the stock pushing through the descending trendline that had capped its upward movement since its earlier highs in July.

This technical breakout is backed by strong volume, suggesting investor confidence and potential for further upside.

With Nvidia basking in glory, investors are anticipating the release of the Blackwell chips to be a key turning point with CEO Jensen Huang stating that the company is witnessing insane demand.

It’s worth noting that this is not a guarantee the semiconductor will continue rallying based on recent concerns, such as the delay in releasing the Blackwell chips, regulatory uncertainty, and competition. These elements saw NVDA struggle to breach the $120 resistance.

In conclusion, Nvidia’s recent performance is leading to optimistic projections for continued growth. Despite potential challenges, the general consensus remains that the rollout of the Blackwell chips will be a turning point for the company.