Nvidia, a leading provider of artificial intelligence chips, has seen its shares decline by 10% in recent days. Investors are concerned about the company’s exposure to China amid President Trump’s trade war and potential overbuilding of AI infrastructure. The stock is currently below its key moving averages, indicating lost momentum.
Evercore ISI technical strategist Rich Ross believes that Nvidia’s stock is oversold and may be due for a turnaround. According to Ross, the relative strength index (RSI) suggests that Nvidia’s stock is undervalued. However, experts note that several factors will influence the company’s performance in the coming months.
Nvidia’s next-generation chip, Rubin, is expected to be showcased at the company’s upcoming GTC event on March 18. The event will also feature an update on the total AI addressable market opportunity and potential offsets for Nvidia’s China operations. Analysts believe that these factors could impact the stock’s performance in the near term.
Despite concerns about trade war and overbuilding, analysts remain optimistic about Nvidia’s fundamentals. The company’s historical price-to-earnings ratio has been lower than its current level, suggesting that the stock may be undervalued. Bank of America analyst Vivek Arya rates Nvidia a Buy with a $200 price target, indicating potential upside of 68% from current levels.
As the market continues to watch Nvidia’s performance, analysts will closely monitor the company’s upcoming event and any updates on its business in China.
Source: https://finance.yahoo.com/news/is-nvidia-stock-washed-out-yet-on-the-charts-163123318.html