Nvidia (NVDA) Weakness Seen as Buying Opportunity, Analyst Says

NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Gaining Attention on Wall Street. On February 2, Bank of America reiterated the stock as “Buy” with a $275 price target. The firm said that investors should buy any weakness in shares.

“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 recently announced that Nvidia will participate in OpenAI’s latest funding round, making “the largest investment we’ve ever made.”

“We will invest a great deal of money,” Huang told reporters at the event. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.”

Analysts on Wall Street have a consensus “Buy” rating on the stock. The average price target of $250 implies a 33.6% upside; however, the Street-high target of $432 implies an upside of 131.28%.

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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Disclosure: None. This article is originally published at Insider Monkey.