Is Nvidia a good long term investment for long term?
Nvidia has strong financials
Multiple catalysts make Nvidia a solid long-term buy. As the following chart shows, Nvidia's growth has taken off from the end of 2022. NVDA Revenue (Quarterly) data by YCharts. The company's data center business has played a central role in this growth.
NYU finance professor Aswath Damodaran, known as the "Dean of Valuation," thinks Nvidia's fair value assuming a revenue CAGR of 32% over the next five years is $436. Nvidia's current share price is more than twice that amount.
So, if you had invested in Nvidia ten years ago, you're likely feeling pretty good about your investment today. According to our calculations, a $1000 investment made in March 2014 would be worth $172,169.75, or a 17,116.97% gain, as of March 1, 2024.
High-end chip maker Nvidia (NVDA 0.76%) has smashed expectations year over year, with annualized revenue growth of 60% since 2021. With yearly releases of improved graphics processing units (GPUs) for both gaming and cloud computing, the company has been able to continuously offer the best GPU hardware on the market.
So, Nvidia's revenue is on track to increase 5 times in a space of five years considering its fiscal 2024 forecast, translating into a compound annual growth rate (CAGR) of 38%. A similar CAGR over the next five years would take Nvidia's annual revenue to a whopping $295 billion in fiscal 2029.
Assuming Nvidia is still trading at the same forward P/E, its stock price could reach $3,360 by the end of 2030, or 328% above the current share price. That would put its market cap at over $8 trillion.
Based on these scenarios, the stock prices forecast for 2040 range between $1,694 and $8,191. Extending the same growth rates to 2050, the stock price forecast models span from $2,759 to $33,718 per share. Nvidia is expected to reach $1,160 per share by Q1 2025, according to the CoinCodex algorithm, reflecting approx.
Nvidia stock price stood at $840.35
According to the latest long-term forecast, Nvidia price will hit $1600 by the end of 2024 and then $2000 by the end of 2025. Nvidia will rise to $2500 within the year of 2026, $3000 in 2027, $3500 in 2028, $4000 in 2029 and $5000 in 2033.
| Name | 10 Year Price Total Return |
|---|---|
| Microsoft Corporation | 1,123.6% |
| Broadcom Inc | 2,730.3% |
| Advanced Micro Devices Inc | 4,329.8% |
| NVIDIA Corporation | 19,779.2% |
Could investing $20,000 in Nvidia make you a millionaire?
A pragmatic approach to investing in Nvidia
So yes, Nvidia just might be able to grow that a $20,000 investment into a cool million, but it's a long road to that ambitious target and many things can go wrong along the way.
As expensive as Nvidia's stock is, the sheer potential in AI suggests investors should remain bullish on it as an investment. The technology is still in its early stages, and companies are just beginning to develop AI models.
Semiconductor designer Nvidia (NASDAQ: NVDA) has made many millionaires in recent years. Its stock has more than tripled in the last year alone.
The highest analyst price target is $1,400.00 ,the lowest forecast is $620.00. The average price target represents 14.96% Increase from the current price of $874.15. Nvidia's analyst rating consensus is a Strong Buy.
How much upside can investors expect over the next three years? Analysts are forecasting Nvidia's revenue to increase 80% in fiscal 2025 to almost $110 billion, followed by further gains in the next two fiscal years. Nvidia's revenue is expected to touch almost $150 billion in fiscal 2027.
It's already the world's third-largest company
That puts it 'only' $500 billion behind Apple and about $1 trillion behind Microsoft. To put it another way, Nvidia could surpass Apple if its stock were to rally by 23%; it could pass Microsoft if it rallied by 46%.
He has said he generally avoided tech stocks, and according to Berkshire's most recent 13F filing for the fourth quarter, the company held no stake in Nvidia.
Nvidia (NVDA) is currently pulling back, but this is an opportunity to buy, rather than a warning to sell. Despite slipping shares, recent announcements strengthen the bull case. NVDA stock pullback won't last, and two factors suggest shares will exceed $1000.
NVIDIA stock has received a consensus rating of buy. The average rating score is Aa3 and is based on 90 buy ratings, 8 hold ratings, and 0 sell ratings.
After starting 2023 being valued at around a $350 billion market cap, Nvidia is now worth about $2.2 trillion. That's a dramatic expansion in value and it puts it within striking distance of Microsoft and Apple, which are valued at around $3.1 trillion and $2.6 trillion, respectively.
How high can Nvidia stock go?
Assuming Nvidia is still trading at the same forward P/E, its stock price could reach $3,360 by the end of 2030, or 328% above the current share price. That would put its market cap at over $8 trillion.
Based on Nvidia's split history and its current price, a 2024 split is likely. Analyst Ken Mahoney, president and CEO of Mahoney Asset Management, agrees, although with a slightly longer timeline. Mahoney recently told Bloomberg News that he predicts Nvidia will split within 12 months.
When it comes to the Tesla stock price prediction for 2050, Tesla stock would be trading at $4,700 in 2050 if it were to grow at the same 11.8% average rate as the S&P 500. If TSLA were to grow at the same rate as the Nasdaq 100's 17.5% average annual return, it would be worth $18,900 by 2050.
Nvidia stock forecast for 2050
This would represent substantial appreciation from current levels based on our initial 2040 forecast scenario extended through 2050. Applying the S&P 500's 11.13% historical average annual return to Nvidia would result in a potential 2050 stock price of $15,358.
Projections for the TSLA rate in 2025 vary significantly among analysts, with estimates ranging from a stock price above $300 to $3,000 per share. These projections are based on various factors and assumptions, including Tesla's market performance, EBITDA margins, and the broader electric vehicle market.
