A chart analyst has suggested that Nvidia Corporation (NASDAQ:NVDA) is a strong buy despite a recent pullback. The analyst has also set a target price of $1,150 for the company.
What Happened: Todd Gordon, the founder of Inside Edge Capital, has expressed confidence in Nvidia’s stock despite the recent dip. He believes that the company is poised for another upward move, reported CNBC.
Gordon pointed out that Nvidia, a leading stock in the transformative industries, is likely to resume its uptrend. He also noted that several other companies in the semiconductor industry are showing similar patterns, indicating a potential rally in the sector.
“I say that NVDA is just resting its legs gearing up for another move, but this time it's bringing more friends along for the run. There are quite a few different names in the semi-industry setup in a similar fashion telling me that once again the chips are ready to rip,” he said.
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Despite a recent correction, Gordon remains optimistic about Nvidia’s future. He predicts that the stock will reach $1,150, representing a significant increase from its current price.
“The last time we spoke about NVDA was on Feb 21st just before the earnings report, while I was on a ski vacation. I was a bit concerned as the sellers came in before the report and we isolated a downside support level of $664 as a point that I would possibly reduce my position from 8% to 6% in the wealth management portfolio if broken,” he explained, adding, “It traded down to a low of $662 and held, but I reduced my holdings to 6% anyway. I tore my Achilles tendon skiing later that day and the stock rallied about 50% from that low. Ouch. It's ok, we're still overweight at 6% and I'm healing up nicely after surgery.”
Gordon said he is also using Elliott Wave analysis “to gauge the maturity of the trend and by my assessment we have one more wave-5 move to my 2024 target of $1,150.”
Why It Matters: This analysis comes in the wake of a recent dip in Nvidia’s stock. Despite this, the company has been projected to maintain its leadership in the $90 billion accelerator market. This is a significant factor that could contribute to the stock’s future performance.
Earlier in March, CNBC’s “Mad Money” host Jim Cramer also suggested that a potential market pullback could present an opportunity for investors. “I think people are right to expect a pullback here. But that's not a reason to head for the hills. Instead, you want to raise a little cash, watch the market broaden — as it is doing — and then buy your favourite tech stocks when they come down.”
Moreover, Wall Street analysts have been revising their outlooks for Nvidia in response to the latest market trends. These adjustments reflect the company’s resilience and potential for future growth, further supporting Gordon’s analysis.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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