Experts are uncertain about the likelihood of revisiting discussion expectations for the upcoming years, despite acknowledging NVDA’s dominance across various sectors.
As the hype surrounding artificial intelligence (AI) enters a phase of skepticism, there are predictions suggesting a return to the typical trend within the next two to six quarters, underscoring potential risks for NVDA.
Economists stated, “While we uphold the belief that conceptual AI signifies the most revolutionary technological leap since the inception of the Internet, we foresee a decrease in funding levels post-2023.”
In response, analysts have commenced coverage on Nvidia (NASDAQ: NVDA) shares with a Neutral rating and a target price of $410 per share, signaling a 15% downside risk compared to the closing price on Tuesday.
“Over the next four to six quarters, NVDA is projected to generate \(55 in ancillary revenue, with the core company’s earnings per share (EPS) of \)7.29 for CY24 set at a 35x multiple aligning with our $410 price target,” analysts noted. “We anticipate a substantial decline in the platform’s value once NVDA’s growth momentum wanes.”
On the inaugural trading day of 2024, Nvidia’s stock concluded 2.7% lower, and it is currently reflecting a 1.1% decrease in pre-market trading on Wednesday.
