Is Nvidia Stock Going to $144? 1 Wall Street Analyst Thinks So.

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Nvidia (NASDAQ: NVDA) share prices have recently reversed course after seemingly pushing higher for months without a breather. The stock now trades nearly 13% off its intraday high price of over $140 per share hit last month. There is one Wall Street analyst who thinks shares of the artificial intelligence (AI) leader will soon rebound and even exceed its all-time high. Morgan Stanley analyst Joseph Moore put out a new note on Nvidia on Monday increasing his price target from $116 to $144 per share. Moore determined that share price based on what he sees as a jump in earnings per share (EPS) through next year. Moore thinks Nvidia stock is worth buying as his new price target would represent a gain of about 17.5% from its current price. Nvidia's "compelling narrative" After data checks pointed to strong demand in China and Taiwan, as well as the U.S., Moore raised his EPS estimate for the semiconductor giant from $2.94 to $3.34 per share for next year. Moore believes Nvidia, "remains the most compelling narrative in the AI [semiconductor] space, and as we transition from H100 to H200 and then Blackwell, visibility and backlog will improve materially." That last point is the key to an investment in Nvidia right now. Even after its recent correction, Nvidia shares had run up ahead of revenue and earnings growth. In other words, further growth is already built into the stock price to some extent. But even as Nvidia prepares to begin bulk shipments of its new, Blackwell AI platform, its H100 and H200 graphics processing units (GPUs) are still in high demand. That's because many of Nvidia's customers have been waiting in line to get these high-strength computing chips needed for training generative AI models. Those sales will remain strong even as shipments of the new Blackwell chip accelerate. That's why investors should still feel comfortable buying Nvidia shares. Even after the massive gains, there is a strong base of sales, and an even stronger pipeline of new AI products ahead. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $761,658!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Story continues See the 10 stocks » *Stock Advisor returns as of July 2, 2024 Howard Smith has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Is Nvidia Stock Going to $144? 1 Wall Street Analyst Thinks So. was originally published by The Motley Fool