Will Nvidia Stock Reach $1,000?

Nvidia (NVDA) has been a market darling since the beginning of the decade. This is no secret to any level of investor. Regardless of the market environment, it just seems like NVDA bulls can’t lose. Artificial intelligence (AI) is still a hot topic, gaming as an industry and a hobby has never been more popular, and the market hunger for NVDA’s products looks stable, but can this continue? Will Nvidia stock reach $1,000? We’ll go through all the factors that could push the stock to this level, but through the near future, hitting this price target seems unlikely.

NVDA Stock Key Metrics

Like any growth name with a heavy bias toward being labeled a “tech” stock, NVDA’s basic valuation metrics are extremely elevated. As an example, at the time of writing, investors are looking at an eye-watering 101 P/E value. On its own and relative to many other blue-chip stocks, this is a staggeringly high value. But relative to its previous P/Es, this has been a progressive climb. Yes, it’s an elevated figure still, but so far the market has supported this valuation. Investors only need to be concerned with high P/Es like this when a company’s intrinsic valuation can’t be justified. Given Nvidia’s place in the semiconductor and gaming industry, there are many scenarios that analysts can create that reasonably support a continued high valuation. Otherwise, Nvidia’s stock metrics read like most other popular stocks driven by a healthy company. There’s good trading volume at around 44 million on average and volatility has lowered since the beginning of the year. The stock’s momentum is also strongly in favor of a continued move up. Overall, investors shouldn’t worry about the stock itself; there’s sufficient liquidity and enough broad market interest where there shouldn’t be any shocks when holding NVDA.