What happened
Shares of Nvidia (NVDA 3.46%), a semiconductor company, skyrocketed this week after several analysts indicated that the technology giant offers investors some fantastic opportunities in the metaverse and gaming.
The tech stock is up more than 18% over the past week, according to data provided by S&P Global Market Intelligence.
So what
Nvidia's stock got its first share price bump earlier this week after an analyst at Cowen, Matthew Ramsay, said that the company has a huge opportunity in the metaverse. This market -- which is loosely defined as people spending time in a virtual world using an avatar -- could help Nvidia build on top of its other revenue segments, including gaming and data centers.
Image source: Getty Images.
Ramsay believes that when added to its other markets, the metaverse could help Nvidia reach $140 billion in annual sales by 2030. For context, the company generated just under $27 billion in sales for fiscal 2022.
The analyst estimates that Nvidia's sales from the metaverse could reach an impressive $10 billion by 2030 and that the stock's recent pullback has created a good buying opportunity.
All that talk of Nvidia's metaverse opportunity understandably sent Nvidia's shares higher, but they got an additional boost when two Wells Fargo analysts called attention to the company's potential in several key areas.
First, Wells Fargo's Aaron Rakers said that investors should consider that Nvidia could be headed toward $9 to $10 in earnings per share by 2024 because of the company's product roadmap in gaming and automotive technology.
If that wasn't enough to get investors excited, another Wells Fargo analyst, Christopher Harvey, added Nvidia's stock to the bank's "signature picks" list following his colleague's report.
Now what
With all the positive reports coming out for Nvidia this week, it's no surprise that the company's share price rocketed higher this week. And with its recent jump, Nvidia's stock is up an impressive 19% over the past six months.
That's quite a feat considering that many technology stocks are plummeting right now and the S&P 500 has lost about 1% over the same period.
While the market has been particularly volatile over the past six months, it's clear that Nvidia has plenty of irons in the fire -- with gaming, data centers, and the metaverse -- to keep its business growing over the long term.
