Please ensure Javascript is enabled for purposes of website accessibility

Will Nvidia Stock Surge to $650?

By Joe Tenebruso – Updated Sep 2, 2020 at 2:14PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One analyst says it will. Is he right?

Despite its 140% rise so far this year, investors are still underestimating the value of Nvidia's (NVDA 5.24%) stock.

So says Bank of America analyst Vivek Arya. On Tuesday, Arya reiterated his buy rating on Nvidia's shares and boosted his price forecast from $600 to $650. Arya's new target price represents potential gains for investors of roughly 13%, compared to the stock's current price near $575.

A digital bull is climbing an upwardly sloping stock chart.

Analyst Vivek Arya sees plenty of upside for Nvidia's shareholders. Image source: Getty Images.

Arya is bullish on the market opportunity for Nvidia's next-generation gaming chips. The tech titan unveiled a new line of graphics cards on Tuesday that met with rave reviews from gamers and analysts alike.

Nvidia said its GeForce RTX 30 Series GPUs (graphics processing units) deliver the "greatest-ever generational leap" in the history of the product line, with 2-times the performance and 1.9-times the power efficiency of its previous generation chips. 

Arya noted that Nvidia's RTX 3080 and 3070 cards are priced $100 less than expected at $699 and $499, respectively, which should help to boost sales. At the same time, its top-of-the-line 3090 card is priced 25% more than the previous generation, which should help to strengthen the product's profit margins. 

Will Nvidia's stock rise to $650?

The chipmaker's new graphics cards are impressive. They come at a time when video game sales are growing briskly, as more people seek forms of entertainment they can enjoy at home during the coronavirus pandemic. In turn, global gaming sales are projected to increase by 9.3% to $159.3 billion in 2020, according to Newzoo. 

As a key supplier to this massive and steadily expanding industry, Nvidia's future is bright. It's likely only a matter of time before its stock reaches $650 per share -- and it could happen sooner than many investors currently expect.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
$131.67 (5.24%) $6.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.