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Peak demand for new NVIDIA products will pass by the middle of next year
There are quite a few analysts among analysts who believe in further growth in NVIDIA’s share price, since the beginning of this year it has risen by 134%, but not all industry experts share this optimism. According to representatives of New Street Research, the peak demand for new NVIDIA products will pass in the next six months, followed by a correction of the company’s stock price to $ 400.
Image source: NVIDIA
As Pierre Ferragu explains in his research note, NVIDIA’s current stock price already has all the expectations for the financial uplift provided by the new product cycle in both 3D and server segments. The New Street Research specialist believes that NVIDIA competes with itself, being the leader in these segments, and therefore the cyclical demand determines the dynamics of the company’s financial indicators. According to the expert, new products in the server and gaming segments will support NVIDIA’s revenue growth in the next six months, and in the future, the growth potential will significantly weaken.
This will lead to a correction in the price of NVIDIA shares, it may fall to $ 400, as investors will be disappointed with the downturn in the market. A similar dynamic will manifest itself in the first half of next year, according to a representative of New Street Research. Under such conditions, the analyst recommends selling NVIDIA shares before they fall in price. The current rate is $ 550.51 per share, during the last trading it slightly decreased by 0.55%.