Nvidia Share Price Target: Nvidia, the powerhouse behind cutting-edge graphics processing and a leader in artificial intelligence, has taken the tech world by storm. But with great potential comes a burning question for investors: where will the company’s share price be in the coming years?
In this blog post, we delve into analyst predictions and explore potential roadblocks and boosters that could shape Nvidia’s stock price trajectory from 2024 to 2030.
What is Nvidia Corporation?
Nvidia Corporation, a multinational technology firm headquartered in Santa Clara, California, USA, was established in Delaware in 1993. It went public on January 22, 1999, with shares trading on the NASDAQ Stock Market under the ticker symbol NVDA. NVDA shares are featured in major stock market indices such as the S&P 500, S&P 100, and NASDAQ-100. On November 6, 2020, NVDA stocks reached their highest ever closing price of $582.48.
In 1995, Nvidia launched its inaugural product, NV1. Two years later, it introduced the world’s first 128-bit 3D processor, the RIVA 128, which achieved sales of over one million units within four months. The year 2000 saw Nvidia’s acquisition of assets from 3DFX, a prominent figure in graphics technology. This marked the company’s foray into integrated graphics with the nForce platform. In the same year, Nvidia swiftly reached $1 billion in revenue and joined the prestigious S&P 500.
By 2002, Fortune magazine hailed Nvidia as the fastest-growing company in the US. In 2003, it acquired MediaQ Inc. for $70 million, and the Stanford Graduate School of Business Alumni Association honored Nvidia as the Entrepreneurial Company of the Year.
Nvidia’s GPUs powered all Academy Award nominees for Best Visual Effects in 2010, including films like Star Trek and Avatar. It also fueled the world’s fastest supercomputer at the time, China’s Tianhe 1A. In 2020, Nvidia acquired Mellanox Technologies, Ltd., a leading networking product producer, for $7 billion.
As of 2021, Nvidia operates in over 50 locations globally, spanning countries such as Sweden, Denmark, Israel, Czech Republic, Poland, Russia, United Arab Emirates, Germany, France, Ukraine, Finland, Switzerland, and the United Kingdom. It ranked 292nd on the Fortune 500 list and 489th on Forbes’ Global 2000 2020 list. Forbes also recognized Nvidia in its 2020 rankings for World’s Best Employers, America’s Best Employers By State, and Best Employers for Diversity.
Company Profile
| Headquarters | Santa Clara, California, U.S. |
| Founded | April 5, 1993 |
| Founders | Jensen Huang, Curtis Priem, Chris Malachowsky |
| Industry | Computer hardware, software, cloud computing, semiconductors, AI |
| Products | GPUs, CPUs, chipsets, drivers, collaborative software |
| Key People | Jensen Huang (CEO), Bill Dally (Chief Scientist) |
| Revenue (FY 2024) | US$60.92 billion |
| Operating Income (FY 2024) | US$32.97 billion |
| Net Income (FY 2024) | US$29.76 billion |
| Website | www.nvidia.com/en-us/ |
Nvidia Corporation Fundamental Analysis
| Market Cap | $2.38T |
| Revenue (ttm) | $60.92B |
| Net Income (ttm) | $29.76B |
| Shares Out | 2.50B |
| EPS (ttm) | $11.93 |
| P/E Ratio | 77.59 |
| Forward P/E | 40.63 |
| Dividend | $0.16 (0.02%) |
| Ex-Dividend Date | Mar 5, 2024 |
| Volume | 50,483,902 |
Nvidia Corporation Stock Price Historical Chart
| Year | Nvidia Stock Price Prediction 2024 |
|---|---|
| 2024 | $1,224 to $1,371 |
Our analysts are bullish on Nvidia, projecting a continued rise in stock price throughout 2024. Estimates range from reaching $1,224 to $1,371 by year-end, signifying a potential increase of 103% to 106% from current levels.
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| Year | Nvidia Stock Price Prediction 2025 |
|---|---|
| 2025 | $1,350 to $2,800 |
Analyst opinions vary, but some are bullish on Nvidia, projecting a continued rise in stock price throughout 2025. Estimates range from reaching $1,350 to $2,800 by year-end, signifying a potential increase of 170% to 220% from current levels.
Also Read: JNJ Stock Price Prediction 2024, 2025, 2030, 2040, 2050
| Year | Nvidia Stock Price Prediction 2030 |
|---|---|
| 2030 | $8,000 to $12,561 |
Our analysts predict significant growth for Nvidia, with price targets reaching $8,000 to $12,561 by 2030. These forecasts are based on factors like continued growth in AI, data centers, and the metaverse, all areas where Nvidia plays a key role.
Also Read: Amazon stock forecast 2024, 2025, 2030, 2040, 2050
Nvidia Corp Balance Sheet
- Cash & Cash Equivalents: $25.98 billion – This strong cash position indicates Nvidia has ample resources to cover short-term obligations and invest in growth opportunities.
- Net Cash: $15.16 billion (Cash & Cash Equivalents – Total Debt) – The positive net cash position further strengthens Nvidia’s financial flexibility.
- Current Ratio (Not provided, but can be calculated): This ratio compares current assets to current liabilities and indicates a company’s ability to meet its short-term debts. A higher ratio suggests better short-term liquidity.
- Debt to Equity Ratio: Not provided, but can be calculated using Total Debt and Total Equity figures. A lower ratio indicates a company is financed more by equity than debt, which is generally considered more favorable.
- Book Value per Share: $17.19 – This represents the company’s net assets per share, which can be compared to the current market price to assess potential undervaluation.
- Working Capital: $33.71 billion – This positive number indicates Nvidia has sufficient current assets to cover its current liabilities, suggesting smooth day-to-day operations.
Nvidia Corp Cash Flow
- Strong Operating Cash Flow: $28.09 billion – This high operating cash flow indicates Nvidia’s core business operations are generating significant cash, which can be used for funding growth, debt repayment, and shareholder dividends.
- Positive Free Cash Flow (FCF): $27.02 billion (Operating Cash Flow – Capital Expenditures) – A positive FCF is a key metric for a company’s financial health, demonstrating its ability to generate cash after covering operational expenses and investments in capital assets.
- High Free Cash Flow per Share: $10.94 (FCF / Outstanding Shares) – This suggests Nvidia is generating significant free cash flow per share, which can be used for various purposes that benefit shareholders.
Nvidia’s shareholder structure consists of both individual insiders and a significant presence of institutional investors.
Individual Insiders
- Ownership: Relatively small percentage of total shares.
- Key figures: Jen-Hsun Huang (CEO), Colette Kress (CFO), and Mark Stevens (Board Member).
Institutional Investors
- Ownership: Hold a dominant share, approximately 66.7% of outstanding shares.
- Key Players:
- Vanguard Group Inc.: Owns 7.7%, a major investment management company with vast assets under management (AUM).
- BlackRock Inc.: Another investment management giant holding 7.2%.
- FMR LLC (Fidelity Investments): Owns 7.1%, a prominent financial services company with a large AUM.
Does Nvidia Stock Splits?
Yes, In simpler terms, on July 20, 2021, Nvidia underwent a stock split where each share of NVDA stock an investor held was divided into 4 shares. This means investors received more shares, but the total value of their holdings remained the same.
The price of each individual share was essentially reduced by a factor of 4. This is a common practice companies use to make their stock price more affordable to individual investors. It doesn’t necessarily indicate a change in the company’s overall financial health.
Does Nvidia Pay Dividends?
NVIDIA provides an annual dividend of $0.16 per share, resulting in a forward yield of 0.02%. This dividend is distributed quarterly, with the most recent ex-dividend date being March 5, 2024.
| Dividend Information | Value |
|---|---|
| Dividend Yield | 0.02% |
| Annual Dividend | $0.16 |
| Ex-Dividend Date | March 5, 2024 |
| Payout Frequency | Quarterly |
| Payout Ratio | 1.34% |
| Dividend Growth | n/a |
Dividend History
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 5, 2024 | $0.040 | Mar 6, 2024 | Mar 27, 2024 |
| Dec 5, 2023 | $0.040 | Dec 6, 2023 | Dec 28, 2023 |
| Sep 6, 2023 | $0.040 | Sep 7, 2023 | Sep 28, 2023 |
| Jun 7, 2023 | $0.040 | Jun 8, 2023 | Jun 30, 2023 |
| Mar 7, 2023 | $0.040 | Mar 8, 2023 | Mar 29, 2023 |
Could Nvidia Stock Hit $5000 by 2030?
FAQs
Disclaimer: Dear Readers, Please note, These stock price projections are based on various factors like past performance, fundamentals, technical signals and market trends. These projections are for informational purposes only and aren’t financial advice or guarantees.
