Nvidia Corporation, a leading AI chipmaker, is experiencing a downturn in its stock prices despite reporting record-breaking revenues. The company has seen a 12% decline in its share value for the year so far. However, top investor The Asian Investor believes that Nvidia’s massive upside potential outweighs the current market concerns.
According to The Asian Investor, Nvidia will dominate the AI GPU market due to strong growth catalysts such as AI factories and resilient Blackwell GPU demand. The investor expects Blackwell to spur significant growth in the quarters to come, citing no “valid alternatives” to Nvidia’s GPU products.
The Asian Investor also notes that AI spending will continue to rise, which could help push up Nvidia’s margins into the 75-80% range in the years ahead. This optimistic outlook has led The Asian Investor to rate Nvidia a Strong Buy, advising investors to take advantage of the current valuation drawdown and buy the stock.
Wall Street analysts also share The Asian Investor’s bullish sentiment, with 39 out of 42 analysts rating Nvidia as a Buy or higher, giving it a Strong Buy consensus rating. The 12-month average price target is $176.54, which would yield gains of around 50% in the year ahead.
Source: https://www.tipranks.com/news/dont-get-distracted-says-top-investor-about-nvidia-stock