In the long run, share prices are largely driven by earnings growth and changes in a stock's valuation, thus sentiment or news items are less important when it comes to NVIDIA's share price a decade from now. Shares could continue to climb, but this is far from certain, and I surely wouldn't speculate on significant gains in the near term. Prices could move up or down in the near term, the price target consensus and the RSI paint a mostly neutral picture for now. The current analyst price target, per YCharts, is $194, which is almost perfectly in line with the current share price. NVIDIA's current RSI (relative strength index) is 54, which indicates that shares are neither overbought nor oversold today. there is a lot of uncertainty for where broad markets and NVIDIA will head over the near future. Since short-term moves in the broad market are largely driven by things like Fed statements, sentiment, worries about the Delta variant, etc. So if the market rises by 10% over the next half-year, one may reasonably assume that NVIDIA will rise by 14% over the same time frame. NVIDIA has a beta of 1.4, which means that, generally, it moves in the same direction as the broad market, but with more pronounced movements. to a large degree, so it is more or less impossible to forecast where the price will be a week, a month, or half a year from now. In the short term, price action is driven by sentiment, news items, etc. There are two answers to this question, I believe. Over the next decade, NVIDIA Corporation still has considerable upside potential, even though I assume that its valuation will compress significantly. To some extent, this premium valuation is justified, but it seems logical to assume that total returns will, in the long run, be negatively impacted by multiple compression. The stock trades, however, at a pretty high valuation, compared to other semiconductor stocks and relative to other growth mega-caps. NVIDIA Corporation ( NASDAQ: NVDA) is one of the best growth mega-caps from a fundamental perspective and when it comes to the company's business growth potential. Antonio Bordunovi/iStock Editorial via Getty Images Article Thesis
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