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S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Inflation Tips for Startups – Top 11
The Next Big Crisis Is Here (Ad)
Trustees picked by DeSantis may change progressive college
Qatar replaces Russian company in Lebanon gas exploration
The Next Big Crisis Is Here (Ad)
France must raise pension age to 64, prime minister says
Elon Musk's mysterious ways on display in Tesla tweet trial
The Next Big Crisis Is Here (Ad)
Biden, McCarthy to discuss debt limit in talks on Wednesday
Dutch firm: US, allies near deal to limit chip tech to China
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Inflation Tips for Startups – Top 11
The Next Big Crisis Is Here (Ad)
Trustees picked by DeSantis may change progressive college
Qatar replaces Russian company in Lebanon gas exploration
The Next Big Crisis Is Here (Ad)
France must raise pension age to 64, prime minister says
Elon Musk's mysterious ways on display in Tesla tweet trial
The Next Big Crisis Is Here (Ad)
Biden, McCarthy to discuss debt limit in talks on Wednesday
Dutch firm: US, allies near deal to limit chip tech to China
S&P 500   3,852.36
DOW   32,920.46
QQQ   296.26
Inflation Tips for Startups – Top 11
The Next Big Crisis Is Here (Ad)
Trustees picked by DeSantis may change progressive college
Qatar replaces Russian company in Lebanon gas exploration
The Next Big Crisis Is Here (Ad)
France must raise pension age to 64, prime minister says
Elon Musk's mysterious ways on display in Tesla tweet trial
The Next Big Crisis Is Here (Ad)
Biden, McCarthy to discuss debt limit in talks on Wednesday
Dutch firm: US, allies near deal to limit chip tech to China

NVIDIA Outlook Improving: Watchlist Candidate for 2023

Key Points

  • NVIDIA has been named a top chip stock for 2023 by Wells Fargo
  • Bank of America has also given them Buy rating
  • There’s every reason to think the uptrend will continue. 
  • 5 stocks we like better than NVIDIA

NVIDIA Outlook Improving For Second Half of 2023

NVIDIA Corporation (NASDAQ: NVDA) was one of the many chipmaker stocks that struggled through 2022. Not only did this stock drop as much as 70%, but its revenue has also been contracting for the past two quarters. Considering the major headwinds it’s faced, such as US-China tensions and supply chain disruptions, it’s somewhat understandable.

However, with less than three weeks gone this year, we’re once again excited about NVIDIA’s stock and aren’t the only ones. 

Several days ago, Wells Fargo named them among its top chip stock picks for 2023. Despite noting caution on the industry overall, the team there wrote, "we do believe a down-cycle bottom can be established as we move through the first half of 2023”. Regarding NVIDIA specifically, they see the company’s Lovelace GeForce RTX-4xxx series product cycle continuing “to provide investors with the confidence of a bottoming gaming segment".

They’re also looking for the company’s automotive business to kick into gear this year, while their software revenue should also trend upwards. 

Bullish Outlook

The bullish stance on NVIDIA’s prospects this year was echoed by the team at Bank of America, who reiterated their Buy ratings on both them and Advanced Micro Devices, Inc. (NASDAQ: AMD) last week. This was based on fresh data showing that “major hyperscalers are expected to grow cloud spending” in the coming months.


Analyst Vivek Arya expects big tech names like Meta Platforms Inc (NASDAQ: META) and Amazon.com Inc. (NASDAQ: AMZN) to be shown leading the charge in cloud spending, which will be a much-needed boost to the industry. Indeed he expects semiconductors to now experience a “soft-landing,” having logged a pretty rough 2022. 

This industry-wide tailwind was also one of the reasons that Goldman Sachs included NVIDIA as one of its top 50 stocks based on targeted return on equity. For what’s worth, NVIDIA was ten spots higher than AMD. 

Specific to NVIDIA, a fresh collaboration with BioNano Genomics Inc (NASDAQ: BNGO) to develop an acceleration platform has also been welcome news this month. The platform will help analyze almost a hundred cancer workflows and is indicative of strategic thinking by management, who are focused on maintaining high diversification.

Getting Involved

So, short of jumping straight in, what risks exist that investors need to be mindful of? Many of the bearish factors underpinned last year’s sell-off remain, namely red hot inflation prints and a tightening interest rate cycle. Continued fears of a recession and the effect that would have on spending are also likely to counter any fresh optimism about NVIDIA’s revenue bouncing back. 

But aside from these headwinds, which you have to think are already mostly priced into the stock, there’s not much to worry about. Shares haven’t come close to testing the low from last October, and if anything, they look ready to begin testing recent highs.

This will be in the form of the $185 mark, where the bulls ran out of steam last month and August. If they can crack that, there’s every reason to think the trend back into the $200s will continue. 

Bullish calls have been growing since the back end of last year. Short of further supply chain issues or geopolitical tensions escalating, the positives far outweigh the negatives with NVIDIA.

Since last October’s low, they’ve tacked on more than 60% compared to their nearest competitor, AMD, which has only managed a bare 20%. If not in your portfolio, this should justify their inclusion on any watchlist for the coming months.

NVIDIA is a part of the Entrepreneur Index, which tracks some of the largest publicly traded companies founded and run by entrepreneurs.

Should you invest $1,000 in NVIDIA right now?

Before you consider NVIDIA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list.

While NVIDIA currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
NVIDIA (NVDA)
2.7422 of 5 stars
$203.65+2.8%0.08%86.66Moderate Buy$209.23
Advanced Micro Devices (AMD)
2.6857 of 5 stars
$75.40+0.3%N/A45.15Moderate Buy$95.71
Meta Platforms (META)
2.5273 of 5 stars
$151.74+3.0%N/A14.47Moderate Buy$170.53
Amazon.com (AMZN)
3.1806 of 5 stars
$102.24+3.0%N/A93.84Moderate Buy$145.41
Bionano Genomics (BNGO)
1.6494 of 5 stars
$1.85+2.2%N/A-4.51Buy$6.50
Compare These Stocks  Add These Stocks to My Watchlist 

Sam Quirke

About Sam Quirke

Contributing Author: Technical Analysis

After graduating with a degree in finance, Sam worked for a trading technology company as an analyst before joining a prop firm. Here he traded energy, commodity and index futures while utilizing a combination of technical and fundamental analysis. Today he manages his own stock and option portfolio which is made up of longer term positions and shorter term momentum plays. He lives in Chicago.
Contact Sam Quirke via email at s.quirke.us@gmail.com.

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NVIDIA was once the hottest tech stock on the market, but now it’s just another down-and-out play with earnings in decline… or is it?

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