Nvidia Stock Jumps After CEO Comments on Chip Sales Growth
Nvidia's stock price has been on the move after CEO Jensen Huang made comments at the Summit in Scotland, predicting that chip sales will increase by tenfold next year and expecting a 70% revenue growth for the upcoming fiscal year. The company also announced an $8 billion share buyback program and a deal to acquire Hugging Face for $1.293 billion.
The market's reaction has been positive, with Nvidia's stock price jumping 2.54% on Thursday. Analysts are also bullish on the stock, with 53 of 55 analysts recommending a buy, while two recommend holding and none recommend selling.
However, not all analysts agree. UBS notes that the current price is overvalued, citing a high cash flow return on investment of 86% in its HOLT model. The company also expects the market to underestimate Nvidia's margin expansion by 800bps and grow at only 3% until 2029-30.
Nvidia's stock price has been volatile lately, dropping 2.48% over the past month and 3.88% in the last five days. However, its 52-week range is between $164.27 and $236.54, indicating a significant upside potential of around 48%.