Nvidia Stock Attempts Rebound As Bulls Pound The Table
After retreating around 27% in the past three weeks, Nvidia (NVDA) stock is showing signs of a rebound. On Tuesday, the AI-focused chipmaker’s shares hit a six-month low of 104.77 before reversing course and closing at 108.76 — a 1.7% gain for the day. By Wednesday morning, the stock bounced more than 5% to trade around 115.09, sparking optimism among bullish analysts.
Below, we explore the drivers behind Nvidia’s recent slump, the reasons for renewed optimism from top Wall Street firms, and how the company’s upcoming GPU Technology Conference (GTC) may be the catalyst investors have been waiting for.
Recent Pullback Sets Up Potential Buying Opportunity
Rapid Decline:
Nvidia stock fell sharply in recent weeks, retreating 27% amid broad market volatility. Various factors, including geopolitical tensions and concerns about tech valuations, contributed to the dip.
Six-Month Low:
On Tuesday, the share price dipped to 104.77, a level not seen in six months, before clawing back some losses by the market close.
For many analysts, this pullback has opened the door to an attractive entry point. Several notable Wall Street firms believe the recent drop was overdone, especially given Nvidia’s key role in the booming artificial intelligence sector.
Wall Street Analysts Remain Bullish
BofA Securities:
Bank of America reiterated its “buy” rating and a price target of 200 on Nvidia stock. In a client note, BofA described the current share price as “a very compelling price” ahead of Nvidia’s flagship GPU Tech Conference next week.
“Nvidia is trading at a very compelling price ahead of the company’s flagship GPU Tech Conference next week.”
Wedbush Securities – Daniel Ives:
Wedbush analyst Daniel Ives has maintained a bullish stance on Nvidia, advising investors to look beyond short-term noise and focus on the multi-year potential of AI.
“Our bullish calls on Nvidia, and many of the Mag 7, have been upside down this year. But our stock calls are not for the next few months; they are for where we see these tech names over the next 1, 3, and 5 years.”
Ives believes the upcoming GTC could be a turning point for investor sentiment, refocusing the market on the large-scale AI investments and innovations that Nvidia is poised to lead.
Wells Fargo Securities:
Analyst Aaron Rakers at Wells Fargo also sees the recent volatility as an opportunity for investors to add to or initiate positions in Nvidia.
“The market turmoil in the wake of recent geopolitical and economic events has created a buying opportunity for Nvidia stock.”
Rakers maintains an “overweight” (buy) rating with a price target of 185.
GTC Conference: A Possible Catalyst
Nvidia’s flagship GPU Technology Conference (GTC) is just around the corner. Industry observers expect significant updates on multiple fronts:
- Next-Generation GPU Architectures
Nvidia could provide new details about its Blackwell Ultra and Rubin processors, which promise leaps in performance and energy efficiency. - AI & Autonomous Solutions
Updates on how Nvidia’s technology is powering artificial intelligence, robotics, autonomous vehicles, and quantum computing solutions are highly anticipated. - Networking Innovations
Nvidia may discuss next-gen networking technology, critical for large-scale data centers and cloud AI infrastructure.
Many analysts consider GTC a pivotal event where Nvidia often showcases innovations that shape the company’s long-term roadmap. Positive announcements or forward-looking guidance could reinforce the bullish thesis, potentially sparking a stock recovery.
Looking Ahead
While no one can predict short-term market movements with certainty, the overall consensus among prominent Wall Street analysts is that Nvidia’s longer-term trajectory remains promising. With AI-driven technologies entering practically every major industry, Nvidia stands at the centre of what many are calling an “AI revolution.” Recent share price weakness may offer an opportunity for those who believe in the company’s ability to lead the next wave of computing and data processing.
Still, as with any investment, potential buyers should keep an eye on macroeconomic headwinds and the competitive landscape. Nvidia’s fortunes are closely tied to tech spending cycles, data cente expansions, and how quickly enterprises adopt advanced AI solutions. Investors will be watching next week’s GTC for any indications of growth, partnerships, and strategic product announcements.
Disclaimer
This blog post is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult a licensed financial advisor before making any investment decisions.
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