Nvidia (NVDA) shares, which experienced a sharp decline on Thursday following the release of the company’s quarterly results, are showing signs of recovery in pre-market trading on Friday. The stock rebounded by nearly 1.5%, suggesting a potential shift in investor sentiment.
The initial sell-off stemmed from market expectations that were perhaps too high. Nvidia’s guidance, while positive, represented a smaller increase compared to consensus estimates, prompting traders to adjust their positions. Additionally, a lack of clarity surrounding the delay of the Blackwell 200 product contributed to the negative sentiment.
However, analysts are not discouraged by the recent downturn. A review of analyst recommendations reveals that none downgraded the stock or lowered price targets. In fact, several analysts have even raised their price targets, with the majority recommending a buy on the dip.
Fund manager Louis Navellier expressed confidence in Nvidia’s long-term prospects, stating that he does not anticipate any significant competitors emerging to challenge Nvidia’s dominance in the generative AI market. He plans to hold Nvidia for several years, emphasizing its potential for significant growth.
The average analyst price target for Nvidia stands at $151.49, suggesting a potential upside of over 28% from current levels. Despite the recent decline, Nvidia’s stock has gained approximately 144% year-to-date, highlighting the company’s strong performance. If Friday’s inflation data comes in favorably, it could further boost Nvidia’s recovery and potentially erase the recent losses.
The recent pullback in Nvidia’s stock is viewed by many analysts as a buying opportunity, highlighting the significance of Nvidia’s role in driving the advancement of artificial intelligence.
