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Nvidia (NVDA) is a multinational tech giant widely known for its advancement in graphics processing units (GPUs). Its products are used in the most demanding of fields such as scientific research, artificial intelligence (AI), and high-speed computing. Founded in 1993 by Jensen Huang, the Santa Clara-based company has operations worldwide.
About Nvidia Stock
Over the year Nvidia has seen a fairytale-like rise to the top, battling for the top spot as the most valuable company in the world with a valuation of $3.71 trillion. NVDA stock is already up 11% in less than a week to start 2025 and gained a whopping 212% in the past year.
Doug Kass Is Bearish on NVDA
Journalist and hedge fund manager Doug Kass has revealed 15 big surprises that he is predicting for 2025 and one of them is related to AI and Nvidia. He believes that the government won’t be able to keep up with the electricity demand of data centers, leading to strict taxation.
He then argues that power outages and rising natural gas (NGG25) prices will further increase inflationary pressure on the public, leading to subsidized energy prices for households and increased taxes on data centers.
Then, in the absence of some killer application or revenue stream from the usage of generative AI, the focus will shift from consumers to helping companies cut losses. This shift will be beneficial to tech integrators and consultants and detrimental to hyperscalers who will recognize the lack of a steady revenue stream and end up scaling back capital outlay and budget.
Kass ultimately predicts that this will end Nvidia’s golden days, calling for shares to fall as low to as $50.
Nvidia Beats Analyst Estimates
Nvidia reported its third-quarter results on Nov. 20. The company saw a profit of $19.31 billion, translating to $0.81 per share, beating analysts’ estimated $0.75 per share. Revenue during the quarter was $35.08 billion, up 93.6% year-over-year (YOY) and outperforming analysts’ $33.33 billion estimate.
The result was driven by growth in its data center business, where it reported a 112% year-over-year jump to $30.8 billion. Its free cash flow of $16.8 billion rose 138% year-over-year.
Despite solid Q3 results, investors were quick to point toward its below-par Q4 outlook. The AI company anticipates revenue of $37.5 billion, plus or minus 2%. Although the figure surpasses the $37.1 billion estimate, it would reflect 7% sequential growth, more modest than in past quarters.
What Do Analysts Expect for NVDA Stock?
Analysts continue to be bullish on the AI stock as seen by a “Strong Buy” consensus rating and a mean price target of $175.55, reflecting upside potential of 16.76%.
43 analysts are monitoring the stock, with 36 “Strong Buy” ratings, 3 “Moderate Buy” ratings, and 4 “Hold” ratings.
