Shares of chipmaker Nvidia (NVDA) have had a rough start to 2025, as shares are down over 16% year-to-date. Bernstein, led by five-star analyst Stacy Rasgon, said that the decline is “a little stunning,” especially since Nvidia is in the early stages of its Blackwell product cycle, which is a significant development in the artificial intelligence space. Interestingly, Bernstein noted that the stock now trades at its weakest level in a year, with a forward price-to-earnings ratio of around 25. This is also close to 10-year lows.
Rasgon attributes this fall in share price to concerns about supply chain volatility, which investors seem to be “laser-focused” right now. In addition, Tariffs and regulatory risks aren’t helping either, as the Trump administration plans to tighten chip export rules to China. However, the analyst notes that Nvidia has worked through its initial production issues and expects demand for Blackwell to exceed supply for the next several quarters.
As a result, Bernstein remains bullish on Nvidia stock and believes that worries about the AI trade being “over” are premature, especially since Nvidia’s valuation is becoming increasingly attractive. With AI spending on the rise and a new product cycle kicking off, Bernstein maintains an Outperform rating on Nvidia’s stock with a $185 price target.
Is NVDA a Good Stock to Buy?
Overall, analysts remain bullish on NVDA stock, with a Strong Buy consensus rating based on 38 Buys and three Holds assigned in the past three months. Furthermore, the average NVDA price target of $178.66 per share implies an upside potential of 59.5% from current levels.
