Nvidia's Potential Bottom: Wall Street Analysts Weigh In

Nvidia (NVDA) has been on a rollercoaster ride lately, with its stock price experiencing significant volatility. The graphics processing unit (GPU) giant's shares have surged nearly 170% year-to-date, largely fueled by artificial intelligence (AI) demand. However, the stock has also faced a steep pullback in recent weeks, leading some investors to wonder if a bottom is in sight. Wall Street analysts have been weighing in on Nvidia's recent price action, with some seeing a potential buying opportunity.

Jim Cramer, host of CNBC's Mad Money, suggested on Tuesday, December 17, 2024, that Nvidia's stock may have reached a key turning point when it hit the $127 mark. He wrote on X, formerly Twitter, "We may have hit a possible crescendo for Nvidia's stock when it hit the $127 mark. Could be a moment where everyone who wanted to sell did so." This shift in sentiment comes after Cramer previously warned of a "vicious" and "fast" reversal for the chipmaker.

Nvidia shares closed Tuesday at $130.39, down 1.22%, before gaining 0.53% in after-hours trading. Despite recent volatility, the stock has maintained an impressive 170.69% gain year-to-date, largely fueled by AI demand. The company's fundamentals remain strong, with third-quarter revenue surging 94% year-over-year to $35.1 billion. Nvidia's market capitalization stands at $3.21 trillion, with a price-to-earnings (P/E) ratio of 53.

Wall Street maintains an optimistic outlook on Nvidia, with 40 analysts setting an average price target of $170.56. Rosenblatt Securities leads with the most bullish target of $220, while New Street Research sets a more conservative target of $120. Read Next: Bitcoin, Ethereum, Dogecoin Stay Muted Before Fed's Interest Rate Decision: Analyst Says BTC In Parabolic Phase, Reveals Its Duration



Nvidia's recent pullback has led some analysts to raise their price targets and reiterate their bullish ratings. Four analysts have raised their price targets on Nvidia since the stock began its steep pullback. Benchmark analyst Cody Acree maintained a buy recommendation for Nvidia and raised its 12-month price target to $170 from $135. TD Cowen analyst Matthew Ramsay reiterated a buy rating for Nvidia and raised the price target for the stock to $165 from $140. Loop Capital's Ananda Baruah maintained a buy rating for the stock and raised the price target to $175 from $120. Piper Sandler's Harsh Kumar reiterated an overweight rating for Nvidia and increased his firm's price target for the stock to $140 from $120.

These analysts' bullish sentiments are supported by Nvidia's strong financial performance and the growing demand for AI technology. However, not all Wall Street firms are as bullish on Nvidia. Fifteen of the 38 analysts surveyed by LSEG in July rated Nvidia as a "hold," while two analysts were more pessimistic. Deutsche Bank's Ross Seymore, who said in May that it was "too late to buy" the stock, maintained a hold rating for Nvidia with a price target of $140.

In conclusion, Nvidia's recent price action has sparked mixed sentiment among Wall Street analysts. While some see a potential buying opportunity, others remain cautious or bearish. The ultimate outcome will depend on various factors, including Nvidia's financial performance, market conditions, and investor sentiment. As Jim Cramer suggested, the key turning point for Nvidia's stock may have been reached when it hit the $127 mark. However, investors should continue to monitor the situation and consider the various factors at play before making a decision.