Nvidia (NASDAQ: NVDA) stock remains in the spotlight due to its power to influence the entire technology sector, but OpenAI’s latest artificial intelligence (AI) tool shared insights into how the stock may trade at the end of 2024.
As Finnvold reported on Sept. 12, the expected price outlook coincides with a period of bullish sentiment for Nvidia in the near term, mainly due to the company seeing strong demand for its chips.
At the time of writing, the chipmaker’s market cap was $119, up about 2% in the past 24 hours, and the company has benefited from the AI boom, with NVDA shares up about 150% so far this year.
Indeed, the impressive rise in NVIDIA’s stock price can be partially attributed to the company’s ability to continually reward shareholders through dividends.
OpenAI o1 NVDA stock price forecast
To predict stock prices for the end of 2024, Finnbold used OpenAI’s o1 tool for complex queries to analyze factors that may affect NVDA in the coming months.
According to AI Tools, NVIDIA’s stock price will continue to be driven by the company’s role in the AI and machine learning sectors, and as these sectors grow, NVIDIA stands to benefit.
Additionally, the company’s role in supporting cloud computing and big data analytics is driving demand for robust data center solutions, where Nvidia has a strong presence. The tool also highlights the influence the technology company has on the gaming industry through its GPUs, which is likely to have a positive impact on the stock price.
The OpenAI tool also focuses on monitoring competition in the chip market, specifically noting that Nvidia needs to gain a technological advantage over competitors such as Advanced Micro Devices (NASDAQ: AMD) through innovation in order to maintain its market position.
Additionally, the tool highlights the need for consistent revenue and profit growth, directly impacting investor confidence. Notably, Nvidia has recently demonstrated robust revenue growth, reporting revenue of $30.04 billion in Q2 2024, up 122% year over year. In Q3 2024, the company is targeting revenue of approximately $32.5 billion and a gross margin of 75%.
Meanwhile, the AI model warned that stock prices could be affected by economic factors such as a potential recession or supply chain problems.
The AI tool did not provide a specific value for Nvidia’s stock price at the end of 2024, but noted that if the company maintains its market share, the stock price could be higher than the current $119.
Nvidia’s Technology Outlook
Meanwhile, stock trading expert Peter DiCarlo noted in a Sept. 13 X post that NVIDIA is following a pattern of higher lows, signaling an overall upward trend. However, the higher highs continue to be lower, preventing a clear breakout. DiCarlo suggested that the stock would need to surpass the $130 level to break the pattern, which could trigger a more significant upside.
“I believe $120 is the limit before a retest is done and potentially rejected,” he noted.
In the short term, experts predicted that Nvidia could rise to the $120-124 range, where institutional selling is expected. Historically, this level has triggered selling, so if this pattern continues, NVDA could face another round of declines before resuming upward momentum.
He predicted the stock could fall to around $110-108 by the end of September and then rise by the end of the year. Nvidia could close at $140-150 depending on favorable market conditions.
The overall bullish outlook for NVIDIA is also supported by Bernstein analyst Stacy Rasgon, who maintained an “outperform” rating with a $155 price target on Sept. 12.
While AI stocks may have stagnated recently, demand for Nvidia’s chips remains strong, making it a key catalyst for continued growth, according to Rasgon.
Nvidia investors have little to worry about on this front, as CEO Jensen Huang has acknowledged the company is facing high demand, creating tension among customers as they question whether the semiconductor giant can meet their needs.
Buy stocks now with eToro, the trusted and advanced investment platform
Disclaimer: The content of this site is not investment advice. Investing is speculative and your capital is at risk when investing.
