Nvidia (NVDA +1.31%) stock currently trades about 8.7% below its 52-week high of $974, but Wedbush analysts believe it could hit new highs sooner than later.
Wedbush Securities raised its price target from $850 to $1,000, representing a 12% upside from the current share price of $890. Analysts at the firm anticipate positive news from Nvidia at next week's Global Technology Conference (GTC) will boost the stock.
NASDAQ: NVDA
Key Data Points
Is Nvidia stock a buy?
Nvidia usually reveals important news about partnerships and demand trends in the data center market that could be beneficial to the business. Of course, the question is how much growth is already factored into the stock price after surging 590% over the last three years.
Analysts expect Nvidia to report year-over-year revenue growth of 273% to reach $24.3 billion in the April-ending fiscal first quarter. Earnings per share are expected to grow even faster as strong demand for high-end chips boosts the company's margins. The stock trades at a price-to-earnings (P/E) ratio of 74. However, using analysts' earnings estimates for this year, the forward P/E drops to a more reasonable 36.
Nvidia stock is expensive, but the business is growing rapidly. There's room for the shares to move higher depending on the company's outlook beyond the next quarter.
This is why Wedbush might be right about positive news from GTC benefiting the stock. Analysts will be listening to any insights about demand trends for data center products, which made up 83% of the business last quarter.
Still, whatever direction the stock moves in the next few months will pale in comparison to the stock's performance over the next several years. On that note, management sees the data center infrastructure market worth hundreds of billions per year in the next five years, which could support new highs for the stock.
