Going against the trend to buy the bottom? NVIDIA Corporation (NVDA.US) valuation at a ten-year low. Bernstein gives a target price of $185.

Although NVIDIA Corporation (NVDA.US) has been volatile recently, Bernstein believes that its valuation is quite attractive and has given the stock an "outperform" rating with a target price of $185. At the close of trading on Monday, NVIDIA Corporation's stock price had fallen by over 8%, and has dropped by 15% since the beginning of 2025. Bernstein's data shows that with the recent launch of the Blackwell product cycle by this artificial intelligence giant, this fact is "a bit surprising". Analyst Stacy Rasgon stated in an investor report on Tuesday, "Following yesterday's sharp decline, the stock is now trading at a forward twelve-month earnings multiple of around 25 times, its lowest level in a year and near a ten-year low." "In fact, the current stock price is now trading below parity with the SOX index (a situation we have only seen once or twice in the past ten years), and only slightly above the Standard Pool Corporation index, which is the lowest level since 2016." In comparison, the Philadelphia Semiconductor Index (SOX) has fallen by 8% year-to-date. Rasgon pointed out, "It is clear that the introduction of Blackwell has not gone as smoothly as the company had hoped, and there remains additional volatility given investors' concerns over the supply chain." "However, it does appear that they have successfully addressed the issues. Our post earnings conversation with the company indicated that all of Blackwell's $11 billion revenue for the fourth quarter was shipped in January, with the company telling us that they will continue to outperform supply in the coming quarters as demand increases." However, concerns about growth, potential supply chain issues, as well as tariff and regulatory risks, have recently put pressure on the stock. "Nevertheless, we believe it is a bit premature to worry that the artificial intelligence trade is 'over', as valuations are becoming increasingly attractive," Rasgon added. "The market sentiment has clearly shifted towards artificial intelligence companies. However, consumer willingness seems to be on the rise, with a product cycle just beginning, and we are just weeks away from the GTC." NVIDIA Corporation's GTC 2025 is an artificial intelligence conference for developers that will take place in San Jose, California from March 17th to 21st.