Is NVIDIA Corporation (NVDA) the Best S&P 500 Stock to Buy Now?

NVIDIA Corporation (NASDAQ:NVDA) is among the 14 Best S&P 500 Stocks to Buy Now. On December 17, Morgan Stanley analyst Joseph Moore maintained a Buy rating on the stock with a share price target of $250.

This is a reaffirmation of the firm’s earlier update on the chipmaker on December 1, when it lifted the price target on the stock to $250 from $235. Moore projects NVDA to continue benefiting from AI momentum and to hold its dominant market share. CNBC quoted the analyst as saying the following in a research note to investors:

“We continue to see NVIDIA maintaining dominant market share, as threats are becoming overstated, though we aren’t sure exactly what will turn sentiment around. Customers’ biggest anxiety for the next 12 months is their ability to procure enough NVIDIA products generally, and Vera Rubin specifically.”

Earlier in the week, on December 15, Bernstein’s Stacy Ragson reiterated the firm’s Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) and set a price target of $275.

As of the close of business on December 17, Wall Street analysts have a consensus Strong Buy rating on the stock, with a one-year average share price target of $258.97, representing an upside of 46%.

In other news, Reuters reported on Wednesday that the company had resolved a U.S. lawsuit with Valeo. The automotive supplier sued Nvidia in 2023, alleging that a former Valeo employee hired by the chipmaker had stolen confidential trade secrets related to driving assistance systems. The case was scheduled for trial in January.

NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence.

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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Disclosure: None.