Against the trend, is it time to buy the bottom? Nvidia (NVDA.US) is currently trading at a decade low valuation, with a target price of $185 set by Bernstein.
1min read Despite the recent volatility in nvidia (NVDA.US), Bernstein sees the stock's valuation as attractive and gives it a "Run Rating" and a price target of $185.
Nvidia shares closed down more than 8% on Monday, down 15% since the beginning of 2025. The fact that the AI giant recently started its Blackwell product cycle "is a bit shocking," according to Bernstein Group data.
Analysts led by Stacy Rasgon said in a Tuesday investor note that "after yesterday's sell-off, the stock trades at ~25x forward 12-month earnings, the lowest in a year, and near 10-year lows." "In fact, the stock is currently trading at a discount to the SOX index (a situation we've seen only a couple of times in the past decade), and just slightly above the S&P, the lowest since 2016."
By comparison, the Philadelphia Semiconductor Index (SOX) is down 8% year-to-date.
Rasgon noted that "clearly, the introduction of Blackwell has not gone as smoothly as the company had hoped, given the attention to the supply chain, and there remains additional volatility." "However, they seem to have indeed solved the problem. Our post-earnings call with the company showed that all of Blackwell's $11bn in Q4 revenue shipped in January, and the company told us that it will continue to out-supply demand in the coming quarters as demand grows."
However, concerns about growth, potential supply chain issues, and tariff and regulatory risks have recently weighed on the stock.
"Despite this, we think the AI trade 'over' is a bit premature, and the valuation is becoming more attractive," Rasgon added. "Current market sentiment is clearly shifting to the AI group. However, consumer appetite seems to be continuing to rise, and one product cycle is just beginning, with GTC a few weeks away."
Nvidia's GTC 2025 is an AI conference for developers, which will take place in San Jose, California from March 17-21.