Is NVDA Stock a Buy Right Now? 3 Analysts Weigh In on Nvidia Prices.

Nvidia (NASDAQ:NVDA) stock is trending today after the chipmaker’s shares tumbled 6% yesterday. Nvidia’s decline yesterday came amid a selloff in tech stocks that was triggered by hawkish statements from Federal Reserve Chair Jerome Powell and an increase in Treasury yields.

An Nvidia (NVDA) semiconductor chip on a black background.
Source: Hairem / Shutterstock.com

So what else do you need to know?

Yesterday afternoon, Powell said that the central bank would consider increasing its key interest rate by 50 basis points, or 0.5 percentage points, at its next meeting. The Fed will convene on May 3 and May 4.

Typically the Fed only raises its short-term benchmark rate by 25 basis points at a time. Nevertheless, in recent weeks, a number of Fed members have indicated that a 50-basis-point hike in May could be warranted.

Following Powell’s comments, Treasury yields climbed. Today the increase continued, with the yield on 10-year Treasurys reaching its highest level since the end of 2018. Higher Treasury rates make the potential, longer-term gains of tech stocks less enticing.

3 Analysts Weigh In on NVDA Stock

In separate notes to investors, three analysts recently discussed the outlook of NVDA stock with this backdrop in mind. Stating that “Nvidia remains on track to hit supply/demand equilibrium in the second half of 2022,” Piper Sandler analyst Harsh Kumar expects the company to buy back a significant amount of its shares, according to The Fly. Kumar maintained a $350 price target and a “buy” rating on the shares.

Taking a more bearish view was Deutsche Bank’s Ross Seymore. Although the demand for semiconductors is likely to remain strong, investors will probably continue to be worried about a “cyclical slowdown/correction,” the analyst stated. He trimmed his price target to $255 from $285 and kept a “hold” rating on the the chipmaker.

And finally, on April 13, New Street analyst Pierre Ferragu changed his rating on NVDA stock to “buy” from “neutral.” The analyst expects the company to benefit from strong demand for its chips by the “gaming, visualization, and datacenter” sectors. Given the recent decline in NVDA stock, Ferragu thinks that the shares may already reflect a reduction in the company’s revenue from cryptocurrency miners. He raised his price target on the name to $280 from $250.

Analysts’ average rating on NVDA stock is “strong buy,” while their mean price target on the name is $339.19, according to TipRanks.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.


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