Experts are doubtful about the possibility of future discussions regarding expectations for the upcoming years resurfacing, despite recognizing NVDA’s dominance across various categories.
As the excitement surrounding artificial intelligence (AI) nears the “trough of disillusionment,” experts anticipate a return to the typical trend within the next two to six quarters, highlighting potential risks for NVDA.
In a recent statement, economists mentioned, “Although we maintain the view that conceptual AI represents the most groundbreaking technology shift since the advent of the Internet, we anticipate a decrease in funding levels observed in 2023 beyond the year 2024.”
Initiating coverage on Nvidia (NASDAQ: NVDA) shares, analysts have assigned a Neutral rating with a target price of $410 per share, indicating a 15% downside risk compared to the closing price on Tuesday.
The \(410 price target is calculated based on a 35x multiplier of the core company’s \)7.29 CY24 EPS, coupled with the projected $155 sandbox revenue expected to contribute to NVDA’s earnings over the next 4 to 6 quarters. Analysts have expressed concern that the value of this sandbox may diminish significantly once NVDA’s growth stabilizes.
Nvidia’s stock has declined by an additional 1.1% in pre-market trading on Wednesday, following a 2.7% drop on the first trading day of 2024.
