Reasons Some Wall Street Analysts Believe It’s Still a No-Brainer Purchase

Nvidia Stock Plunges: Why Some Wall Street Analysts Think It’s Still a No-Brainer Buy

Nvidia (NASDAQ: NVDA) has been on a remarkable run, with shares skyrocketing more than ninefold since the fourth quarter of 2022. However, the stock has recently experienced a 17% pullback. Despite this, some Wall Street analysts still believe that Nvidia is a no-brainer buy.

Analysts have reiterated buy ratings for Nvidia since the pullback began, with four of them expressing even more optimism about the stock than before. Benchmark analyst Cody Acree raised the price target for Nvidia to $170 from $135, citing his increasing conviction in Nvidia’s continued leadership in the artificial intelligence (AI) chip market. Similarly, TD Cowen analyst Matthew Ramsay raised the price target for the stock to $165 from $140, anticipating strong quarterly updates from the company in August.

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Loop Capital and Piper Sandler also maintained buy ratings for Nvidia, with price targets of $175 and $140, respectively. These analysts believe that Nvidia’s strong business trends will continue, supported by the official launch of the Blackwell architecture in the October quarter.

While there are analysts who are bullish on Nvidia, not everyone on Wall Street shares the same sentiment. Fifteen of the 38 analysts surveyed by LSEG rated Nvidia as a “hold,” expressing concerns about the stock’s valuation already reflecting anticipated growth.

Despite differing opinions on Nvidia, the stock still holds potential for growth. The launch of the Blackwell architecture is expected to be a game changer for Nvidia, providing a catalyst for future growth. While the euphoria surrounding generative AI models may have waned, Nvidia’s leadership in the AI chip market remains strong.

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Before investing in Nvidia, investors should consider all factors, including the recent pullback and differing analyst opinions. The Motley Fool Stock Advisor analyst team has identified the 10 best stocks for investors to buy now, with Nvidia not making the cut. However, these 10 stocks have the potential to generate significant returns in the coming years.

Overall, while the stock has taken a breather, Nvidia’s impressive run is likely to continue. By staying informed and considering all factors, investors can make informed decisions about investing in Nvidia.

*Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.