Nvidia Stock: Analysts Are Bullish, While Reddit User Predicts 'NVDA Will Drop To 800'

Zinger Key Points
  • Analysts are bullish on Nvidia with a $949.36 price target, but Redditors predict a drop to $800 due to supply chain issues.
  • Analysts emphasize bullish indicators, while Redditors foresee short-term challenges for Nvidia stock.

Semiconductor company Nvidia Corporation NVDA is currently the subject of contrasting opinions among analysts and Reddit users.

Analysts are bullish, with a consensus price target of $949.36 a share. They maintain a consensus rating of “Buy” for Nvidia, with the most recent ratings citing a potential upside of 31.50% from the current price.

However, observers of the stock on Reddit predict a drop to $800. They cite market trends and supply chain issues faced by other semiconductor companies as reasons for the bearish take.

Chart: Benzinga Pro

Positive analyst sentiment is supported by Nvidia’s strong technical indicators, including trading above its key moving averages (see chart above) and experiencing buying pressure, which are considered bullish signs.

Chart: Benzinga Pro

  • The oscillators are signalling bullishness. Nvidia stock’s price has moved to upper (bullish) Bollinger Band from the lower (bearish) one.
  • The Moving Average Convergence Divergence (MACD) line, though a negative currently (-1.74), can be seen to have crossed over the signal line (viz. -3.65) – signalling potential change in market momentum towards being bullish.
  • The Relative Strength Index (RSI) at 51.77, has been resting in the Neutral territory (<30 and <70) for some time now- shying away from giving out any solid market signal.

Also Read: Nvidia’s Cloud Gaming Evolution: Streamline GeForce Now and Anticipate Xbox Support on Steam Deck

Reddit Users’ Contrarian View Of Nvidia

Redditors, such as user rayrayrex on r/wallstreetbets, are bearish on Nvidia’s short-term prospects.

NVDA will drop to 800,” the Reddit user said.

The supply chain constraints that SCMI and AMD attributed to their less than stellar results are the same issues that NVDA will have been facing when they report their results. Ergo they will miss either revenue, eps, or guidance going forward

Redditor rayrayrex

Super Micro Computer Inc SCMI and Advanced Micro Devices Inc AMD face supply chain constraints and market expectations regarding Federal Reserve policy. This could lead to a bearish trend for Nvidia.

The contrasting viewpoints on Nvidia highlight the complexity of stock market analysis.

While analysts base their recommendations on fundamental and technical analysis, Reddit discussions reflect market sentiment and short-term speculation. Investors should consider a range of factors and conduct their own research before making investment decisions.

Read Next: Semiconductor Stocks Pop After Fed Meeting And Strong Numbers From This Chip-Maker

Image: Shutterstock

Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorTechnicalsOpinionTop StoriesAnalyst RatingsTechTrading IdeasExpert IdeassemiconductorsStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!