Will Nvidia Stock Hit $250 in October as Polymarket Predicts?

Nvidia stock has finally broken out and is now trading at a record high, with its market capitalization approaching the $6 trillion milestone. It jumped to $241 in the premarket session, up by over 47% from its lowest level this year. And traders on Polymarket increasingly believe that it may jump to $250.

Polymarket Traders See Nvidia Stock Rising to $250

Nvidia shares have staged a strong comeback in the past few weeks, crossing the important resistance of $236, its previous all-time high.

Polymarket traders believe that the stock will continue rising and hit the key level of $250 this month. Odds of this happening have jumped to 68%.

Top analysts believe that the stock has more upside to go. According to MarketBeat, the average estimate among analysts is that the stock will jump to $321, up by 35% from the current level.

BNP Paribas analysts reiterated the outperform rating and a target of $345, representing a big jump from where it is today. Cantor Fitzgerald has a target of $350, while Kevin Cassidy, an analyst from Rosenblatt Securities, has a target of $390.

Nvidia’s Fundamentals Have Improved

Most of these analysts cite the company’s fundamentals, which have improved in the past few years amid the ongoing artificial intelligence (AI) boom. Its revenue and profitability growth have continued growing this year, while its valuation has dropped.

The second-quarter revenue jumped to $104 billion, much higher than analysts expected. Its profits continued soaring, with the gross margin hitting the important level of 75%.

The earnings per share (EPS) also continued to rise, while free cash flow (FCF) surged to a record high.

Most notably, the company’s growth is expected to continue rising in the foreseeable future. Yahoo Finance data shows that analysts expect its annual revenue to jump 90% this year to $411 billion. They also see the revenue soaring by 67% next year to $687 billion. In its report, Nvidia said that its revenue would jump by 70% next year. In most cases, Nvidia’s revenue and earnings have been stronger than expected.

Nvidia’s strong revenue and cash flow growth have made it record the biggest share buyback program. In its last earnings report, the firm continued its $80 billion share repurchase program, and last week it announced a $150 billion purchase. Over time, the outstanding shares have dropped to 24.15 billion to 25 billion in 2022.

Nvidia stock will react to the upcoming earnings by some of its biggest clients, including companies like Microsoft and Meta Platforms. These results will provide more information about AI spending.

Despite all this, Nvidia faces some challenges. For example, the company’s deal with Groq has been taken to court, with its shareholders alleging that they were shortchanged. It also faces substantial competition from companies like Microsoft, Google, and AMD. This competition will ultimately affect its margins.

NVDA Stock Price Technical Analysis

Technicals suggest that Nvidia shares have been in a strong upward trend this year. It has now invalidated the double-top pattern by moving above the crucial resistance level of $235.

The stock has jumped above all moving averages and the Supertrend indicator. At the same time, the Average Directional Index (ADX) has jumped to 17.27, its highest level since September 9 this year.

Therefore, the stock is likely to continue rising as bulls target the psychological level of $250. This view will be confirmed if it moves above the ascending trendline. Moving above that level will invalidate the rising wedge chart pattern, a common reversal signal.

This article is for informational purposes only and does not constitute financial or investment advice. Prediction-market probabilities, analyst targets and technical levels can change as market conditions evolve.