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Nvidia (NASDAQ:NVDA) shares have surged more than 200% in 2023, following a painful 2022 as shares plunged nearly 50%. However, there are some concerns about the semiconductor giant’s valuation and growth, especially as generative artificial intelligence looks set to disrupt nearly every industry.
2023 Stock Performance
Nvidia shares have climbed 229% in 2023 and hit a 52-week high of $505.48 in the latter part of November. Over the past six months, even amid concerns about China export controls, shares have gained more than 19%.
However, over a five-year timeframe, Nvidia (NVDA) shares have completely trounced the broader averages as they gained more than 1,180%, not including dividends.
What Quantitative Measures Say
Nvidia (NVDA) receives a Hold rating from Seeking Alpha’s Quant Rating system. This comes in large part due to a F grade for valuation, the same as three months ago. The stock receives a A+ for growth, up from the A it received three months ago.
Nvidia also receives an A+ for profitability and momentum and an A- for revisions.
What Wall Street Says
Sell-side analysts are highly complimentary of Nvidia (NVDA). Of the 53 analysts surveyed by Seeking Alpha in the past 90 days, 37 of them have a Strong Buy rating and 13 have a Buy rating, while 3 have a Hold rating. That means a whopping 94% of analysts are positive on the stock and the company’s future.
Seeking Alpha author Valuentum said Nvidia’s latest earnings report shows there is more upside to come.
“We were wrong about Nvidia stock in November 2022, but we’re now constructive on shares given the AI boom, which drives the big delta in our fair value estimate change,” Valuentum wrote in a recent report.
Latest Earnings
In its most recent earnings report, Nvidia (NVDA) reported third-quarter results that topped expectations. It earned $4.02 per share on $181.2B in revenue, as data center revenue came in at $14.51B and surged past expectations of $12.82B.
Earnings Predictions
Meanwhile, analysts expect the company to earn $4.50 per share on revenue of roughly $20.03. In the same period in 2022, Nvidia earned an adjusted 88 cents per share on $6.05B in revenue.