Can Nvidia stock hit $600 in 2024?

As 2023 drew to a close, Nvidia (NASDAQ: NVDA) unequivocally took center stage in the stock market spotlight. 

Boasting a staggering year-to-date surge of over 240%, NVDA played a pivotal role in driving the broader equity market’s rally, propelling the S&P 500 to within 0.6% of its record high. 

With Nvidia’s stock price more than tripling last year, on January 2 we turn our attention to whether Wall Street analysts anticipate the chipmaker sustaining this momentum in 2024 and, if so, to what extent.

Wall Street’s thoughts on Nvidia

In a nutshell, analysts on Wall Street do not think Nvidia is done rallying.

Despite a colossal gain last year, the average 12-month price target on NVDA currently sits at $628.59, implying a potential upside of 26.5% from the current stock price. This consensus forecast is based on analyst coverages on Nvidia’s stock issued in the past 12 months. 

Among the Wall Street firms that are most bullish on NVDA is Bernstein. Last month, the asset manager’s analysts said Nvidia is still among the cheapest AI-related stocks in spite of a 240% surge.

Remarkably, the strategist said Nvidia’s “massive return in the stock has arguably been disappointing” and even though forward estimates have quadrupled in 2023 amid the AI boom, “multiples have compressed by almost 2/3 during the same period,” they wrote.

In addition, NVDA’s Price to Forward Earnings (P/FE) are still sitting in the mid-20s, the cheapest since the crypto downturn at the end of 2018. P/FE refers to a valuation gauge that reflects market expectations for the company’s future profitability. 

Other Wall Street heavyweights including Goldman, JPMorgan, and Morgan Stanley have also raised their price targets on NVDA stock recently, each higher than $600. 

On the other hand, UBS analysts are among those on the bearish side of the spectrum, predicting a 20-30% pullback in the company’s shares in the first half of 2024. 

Nvidia stock price analysis

At the time of writing, shares of NVDA were sitting at $495.22, up 0.66% in the past five trading sessions and more than 6.4% across the month.

The AI stock is facing a resistance zone between $504.3 and $505.48, the latter also being its all-time high. 

NVDA technical analysis chart. Source: TradingView

On the downside, NVDA is underpinned by near-term support levels at $480.88 and $476.09. Below that, the next major support for the stock is $457.67, where the 100-day moving average (MA) is located.

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