Leading global GPU maker Nvidia (NASDAQ: NVDA) saw its stock price fall below the $200 level on Thursday’s closing bell. Weak sentiments and concerns over AI capex are among the reasons for the harsh pullback in June. NVDA has fallen close to 9% in a month, and traders are skeptical of investing in the giant as it is getting difficult to pinpoint when it could bottom out in price. The AI pit is getting deeper, as firms are continuing to spend billions to build the next-gen technology.
Also Read: Amazon Stock Could Follow Nvidia If AI Business Keeps Growing
Bernstein’s Latest Bullish Price Target For Nvidia Stock (NVDA)
Stacy Rasgon, the analyst at asset management company Bernstein, has maintained his buy rating for Nvidia stock. In a note to clients on Tuesday, the strategist explained that NVDA is ready for a double-digit upward tick. Accumulating the stock below the $200 level could be beneficial, as it has a history of shooting up towards the $215 range as buying pressure increases. Both retail traders and institutional funds take entry positions in the dip, which makes prices head north thereafter.
The Bernstein analyst’s price target for Nvidia stock is $315. That’s a profit of $140 per share, and is considered a remarkable return. The analyst predicts that NVDA could surge by a whopping 62% from its current level and will move beyond trading below $200. Therefore, taking an entry position now in the hardware giant could be beneficial to investors. Accumulating it at further dips opens the window to gain more profit when the upsurge begins.
If the price prediction from Bernstein turns out to be accurate, an investment of $1,000 could turn into $1,600+. That’s remarkable gains, as not every asset in the broader US stock market can go this high. Nvidia is also the leader in the AI space, and several tech firms depend on its chips to build their data centers. The revenue will keep flowing well into the decade, and also into the next decade. The prospects for Nvidia stock have never been brighter than at any time before.