Nvidia (NVDA) is once again capturing investors’ attention, though not in a good way. The stock has seen a recent pullback after a strong run, catching the attention of investors looking for potential entry points. Shares fell on Tuesday as concerns over the AI trade weighed on the chipmaker, while fading hopes of resumed sales to China added extra pressure.
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Despite short-term volatility driven by AI sector concerns and China-related uncertainties, analysts suggest this dip could present a buying opportunity for long-term investors.
What’s Happening with NVDA Stock?
Nvidia shares showed some rebound, up 0.52% on Wednesday after a steep 4% drop on Tuesday. The pullback comes amid broader losses in AI-exposed companies after renowned investor Michael Burry revealed new bearish bets against Nvidia and Palantir (PLTR). In particular, Burry’s Scion Asset Management revealed put options on 1 million Nvidia shares, valued at $187 million.
Over the past five days, the stock has fallen a total of 4.42%.
AMD’s Stellar Earnings Fail to Lift NVDA
Nvidia’s peer, Advanced Micro Devices (AMD), reported a strong Q3 earnings. However, its shares dropped as investors appeared to have already priced in expectations for strong results.
Investors appear to be taking profits ahead of upcoming earnings, which could bring renewed volatility to the broader market.
Nvidia Faces Setback on China Sales
Nvidia was also impacted, as reports suggest China may remain off-limits for the chipmaker. Later, the White House confirmed that it won’t try to approve sales of Nvidia’s latest AI hardware to China. This comes after President Trump and Chinese leader Xi Jinping didn’t discuss the issue during their meeting in South Korea last week.
What’s Next for Investors?
Despite the recent setback, Wall Street analysts maintain a strongly bullish stance on Nvidia. Recently, five-star-rated analyst Ananda Baruah at Loop Capital Markets raised his price target on NVDA to a Street-high of $350. This implies an upside of more than 75% from current levels.
Baruah said Nvidia is leading a strong new wave of generative AI adoption. The company plans to increase shipments of its next-gen Blackwell GPUs, possibly doubling units over the next year while earning higher prices.
Is Nvidia a Buy or Sell Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 37 Buys, one Hold, and one Sell assigned in the last three months. At $237.35, the Nvidia average share price target implies a 19.5% upside potential.
