Nvidia Stock Forecast: After record Monday, NVDA angles toward $700 in Tuesday premarket

Nvidia (NVDA) stock looks likely to post yet another new all-time high on Tuesday. Shares of the favorite growth stock have added 0.5% in Tuesday's premarket, lifting the company helmed by CEO Jensen Huang to $697.

Nvidia stock shocked the market on Monday after it launched an offensive in the face of a broad market sell-off. NVDA stock reached a new all-time high in the morning's regular session at $694.97 after a Goldman Sachs analyst raised the semiconductor's price target by 29%. The leading chip designer saw its share price close up just below the intraday high at $693.32 for a gain of 4.8%.

Nvidia’s rally was more surprising due to it contrasting sharply with a market in freefall. The S&P 500 sold off alongside the NASDAQ and Dow Jones as bets on an interest rate cut in March dried up. Market odds for an interest rate cut in March have plunged from above 50% in January to just 15% at the start of February. The Dow Jones lost 0.7% on Monday, while the S&P 500 receded 0.3%. The NASDAQ Composite lost 0.2%.

The market's negativity was due to the ISM Services Purchasing Managers Index (PMI) for January, which arrived much hotter than expected. The index showed expansion in the services sector at 53.4, well above the 52.0 consensus or the 50.5 reading from December.

Nvidia stock news: New NVDA price target at Goldman clocks $800

Goldman analyst Toshiya Hari said on Monday that prior worries concerning reduced server demand in the back half of 2024 were now looking like a mirage. Nvidia’s artificial-intelligence-focused server chips are in fact seeing improved demand as GPU supplies normalize, Hari said.

With added visibility through the first half of 2025, about 18 months ahead, Hari collectively raised his 2025 and 2026 earnings per share forecasts by more than 20%.

Because of this adjustment to earnings, the Goldman analyst raised the bank's price target for Nvidia stock to $800. This amounted to a 29% revision from the prior $620 price target. The average price target for NVDA stock on Wall Street is $680.

In addition to large orders of server chips already scheduled in advance from the world’s biggest hyperscalers, such as Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN) and Alphabet (GOOGL), Hari predicts that heavy demand will stem from product cycles involving the B100 and H200 chips. 

The B100 is a next-generation compute GPU product for AI and high-performance computing (HPC) applications. The H200 GPU replaces the H100 with 40% more memory bandwidth and 80% more memory capacity.

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The Nasdaq 100 is a large-cap index made up of 100 non-financial companies from the Nasdaq stock exchange. Although it only includes a fraction of the thousands of stocks in the Nasdaq, it accounts for over 90% of the movement. The influence of each company on the index is market-cap weighted. The Nasdaq 100 includes companies with a significant focus on technology although it also encompasses companies from other industries and from outside the US. The average annual return of the Nasdaq 100 has been 17.23% since 1986.

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Nvidia stock forecast

Based on the weekly chart below, Nvidia stock has been mounting a challenge toward its long-term topline resistance. This trendline stems from the August 2020 high near $147 and then sees its second peak at $346 in November 2021. 

Drawing this trendline out, it would appear that NVDA is closing in on a retouch more than two years later somewhere around $715. 

The 13-week Simple Moving Average (SMA) waxes near $536, and $500 is the most recent period of sustained resistance, meaning that it may turn into long-term support down the line. With the Relative Strength Index (RSI) well into overbought territory, expect NVDA to consolidate in the present area shortly.

NVDA weekly chart