Chipmaker Nvidia’s (NVDA) recent volatility appears to be creating a divide among financial experts in terms of what will happen next. According to Barron’s, Aswath Damodaran, NYU’s “Dean of Valuation,” believes Nvidia is overpriced and now values the stock at $87 per share, which is well below the current price of $102.83. Considering how NVDA shares have fallen since its recent earnings report, it appears that a good chunk of investors might agree with Damodaran’s assessment.
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Nevertheless, where there is a bear, there is always a bull. Indeed, Bank of America (BofA) sees the recent decline as a buying opportunity. Analyst Vivek Arya noted that the stock is at its cheapest valuation in five years, and BofA’s price target of $165 per share suggests 60.5% upside potential from current levels.
Arya’s optimism is primarily driven by Nvidia’s continued leadership in AI investing and the anticipated shipments of its next-gen Blackwell chips. While Nvidia faces regulatory pressures and delays with its new chips, BofA isn’t concerned. It believes demand for the current Hopper chip will remain strong as AI investment continues to grow.
It’s worth noting that, so far, Arya has enjoyed a 77% success rate on NVDA stock, with an average return of 81.98% per rating.
What Is a Good Price for NVDA?
Overall, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 122% rally in its share price over the past year, the average NVDA price target of $151.79 per share implies 47.61% upside potential.
