'No need to overthink this': 3 reasons why Nvidia should keep outperforming in 2024

Despite Nvidia (NASDAQ: NVDA) shares being up 225% year-to-date, Wall Street brokerage firms continue to recommend their clients to own the chipmaker into 2024 as the outperformance should continue.

Today, TD Cowen has designated Nvidia stock as their Best Idea for 2024, backed by three key points.

Firstly, NVIDIA is accelerating its hardware product roadmap, aiming for a cadence of less than a year starting with Blackwell in 2024. Secondly, the market is perceived to be in the early stages of accelerated computing and generative AI, where NVIDIA holds a strong leadership position.

Lastly, despite the anticipation of a potential 'digestion' year in 2025, the current valuation, positioned near the low end of its five-year range on most metrics, is believed to already account for this scenario.

Overall, TD Cowen expresses confidence in NVIDIA's growth prospects and market position.

“An accelerating product roadmap keeps NVIDIA the far and away leader in the very early days of a massive paradigm shift to ubiquitous accelerated computing and generative AI,” analyst Matthew Ramsay said in a note.

“No need to overthink this - NVIDIA is the leader in the most consequential growth vector of computing arguably ever (and certainly since the advent of the Internet).”

Ramsay’s price target of $700 per share implies an upside potential of almost 50% through Friday’s closing price.

By Senad Karaahmetovic

You May Also Be Interested In

• Active options: NVDA TSLA SPCX AAPL AMZN MU INTC NFLX MSFT PLTR
• Active options: NVDA TSLA AAPL SPCX AMZN INTC AMC MU
• Citi sees 'significant upside potential' in this Japanese stock