Analysts Stick With NVIDIA (NVDA) as AI Momentum Drives Long-Term Value

NVIDIA Corporation (NASDAQ:NVDA) is one of the AI Stocks Analysts are Tracking Closely. On December 3^rd, Bank of America reiterated the stock as “Buy,” stating that it is sticking with the AI chipmaker.

The firm believes Nvidia warrants a premium valuation because of its leadership in AI. However, there are risks and uncertainties involved that add uncertainty to the outlook.

“Our $275 PO is based on 28x CY27E PE ex cash, within NVDA’s historical 25x-56x forward year PE range, which we believe is justified by NVDA’s leading share in fast-growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.”

In other news, Nvidia CEO Jensen Huang said he met with President Donald Trump on Wednesday to discuss chip export restrictions.

Huang explained that while he did support export controls, he opposes proposals like the AI GAIN Act, stating that it would harm US competitiveness. Moreover, he noted that state-by-state regulation would stall innovation and create national security risks.

“State-by-state AI regulation would drag this industry into a halt and it would create a national security concern, as we need to make sure that the United States advances AI technology as quickly as possible,” Huang said. “A federal AI regulation is the wisest.”

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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