Nvidia (NVDA) Stock: Why Analysts Still Say “Strong Buy” Despite Recent Dip

Shares of the prominent chipmaker Nvidia (NVDA) have demonstrated considerable volatility recently. After reaching an annual low point earlier in March, touching approximately $107, the stock experienced significant price swings.

In the subsequent period, spanning roughly three weeks, NVDA shares managed to surpass the $120 mark on a couple of occasions, only to retreat shortly after each attempt.

Currently, the stock is trading around $109.70, reflecting a modest decrease of about 1.5% over the last day. This contributes to a cumulative decline of approximately 18.3% since the beginning of the year for the semiconductor company’s shares.

Wall Street Sentiment on Nvidia Stock

Market analysts on Wall Street maintain a close watch on the semiconductor manufacturer. According to data compiled by TipRanks, more than 40 market professionals actively cover Nvidia’s stock. Their collective outlook remains remarkably positive despite the recent price turbulence.

The consensus among these analysts is strongly skewed towards buying:

• A vast majority, around 39 analysts, rate NVDA as a “strong buy”.
• Only a small number, specifically three analysts, recommend a “hold” position.
• Notably, no analysts currently advise selling the stock.

This widespread optimism is further reflected in the average price target set by these experts. The consensus target price stands at $176.50, suggesting a potential upside of over 57% from current levels.

Individual analyst forecasts vary, with the most conservative projection placing the stock at $125 within the next 12 months. Conversely, the most optimistic target reaches as high as $220.

The prevailing view among most financial analysts is that Nvidia holds a commanding leadership position within its industry segment, even when considering the substantial competition it faces.