Top Analysts are Still Bullish on NVIDIA Stock Price as it Retreats

Key Insights

• NVIDIA stock price has dropped into a local correction this year.
• It has formed a large bullish flag pattern on the daily chart.
• All analysts tracking the company have a buy rating.

NVIDIA stock price has slumped and moved into a local correction this month. After soaring to a record high of $235 in May, the stock has eased by 10% to the current $210. Despite all this, all analysts tracking the company have a buy rating and expect it to eventually rebound.

Analysts Recommend Buying the Dip in NVIDIA Stock

Yahoo Finance data shows that all analysts tracking Nvidia have a bullish recommendation. The stock remains slightly lower than its highest point this year. 48 of these analysts have a buy rating, while three have a strong buy rating and 3 a hold.

These analysts have continued boosting their outlook for the stock. Data shows that the consensus price target is $305. 12 months ago, the target was $173, meaning that investors have continued gaining confidence in the company.

The most bullish analyst is Tristan Gerra of Baird, who expects that the stock will eventually jump to $500. Such a move would drive its market capitalization from $5.12 trillion today to $12 trillion, all else constant.

It would make Nvidia larger than the GDP of all countries except the US and China. The other top analysts bullish on NVDA stock are from companies like Bernstein, William Blair, Needham, Evercore, and Deutsche Bank.

The Case for NVIDIA Stock

Reading reports by top analysts indicates that a common theme is coming out. One of the top reasons why they are bullish on the company is that its growth is accelerating. The company is expected to make over $92 billion in the current quarter, followed by $102 billion in the third quarter.

This year, it will eventually make $400 billion in annual revenue. That’s a notable number for a company that used to make less than $30 billion in annual revenue a few years ago.

Most notably, Nvidia is not sacrificing its profitability to boost its growth. Rather, it is expanding its topline and bottom line this year. Also, this trend will likely continue in the foreseeable future because of its economies of scale.

Analysts also note that Nvidia’s strategic investments are paying off. Some of the good examples of this are its investments in Intel, Lumentum, Nebius, and Marvell Technology. All these companies have seen significant increases in value since Nvidia’s investment.

NVIDIA also became a late investor in OpenAI, which will go public at a $1 trillion valuation later this year. These gains will boost its unrealized profits over time.

Meanwhile, the company is also dominating in other areas other than the GPU sector. For example, it is now aiming its focus on the CPU industry with its Vera product lineup.

Jensen Huang believes that the business will make the company billions of dollars over time. This growth will be because of the ongoing agentic AI theme.

Above all, analysts believe that Nvidia is now trading as a value stock instead of the growth juggernaut it is. It has a forward P/E ratio of just 22, lower than the S&P 500 Index multiple of 23.

NVDA Stock Price Technical Analysis

The daily chart shows that the NVIDIA stock price has pulled back in the past few weeks. It continues to underperform the Nasdaq 100 and S&P 500 indices. It has dropped from $235 to $210 today.

On the positive side, the stock has formed a giant bullish flag pattern. This pattern started forming on March 30 when it bottomed at $164.30. It is now in the flag section and has found support at the 100-day moving average.

Therefore, the stock will likely rebound substantially in the coming months. These gains will be confirmed when the stock surges above the all-time high of $235.

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