Nvidia (NASDAQ: NVDA) fell 1.15% to close at $135.34 on Monday. The stock price briefly fell to $132.08 during intraday trading, but managed to recover slightly by the close of trading.
Despite this small rebound, NVIDIA has struggled to maintain momentum and currently finds itself near the lower end of its recent trading range.
At its current valuation, NVIDIA’s price-to-earnings ratio (P/E) is a very high 61x, reflecting the market’s long-standing premium for the company. Interestingly, this is in line with Nvidia’s relative valuation in 2021, when it was trading at just $15.
The forward P/E ratio, currently 30.9x, suggests that investors remain confident in Nvidia’s ability to deliver solid earnings growth in the coming years.
Nvidia stock chart analysis
Over the past month, the stock has traded between $131.80 and $152.89, a significantly wider range. NVIDIA stock is currently hovering near the lower bound, supported by major trend lines and moving averages, and approaching key support levels between $131.60 and $135.33.
On the flip side, there is resistance between $147.64 and $148.89 that the stock must overcome to regain upward momentum. NVDA is still trading within the high end of its 52-week range, but has clearly lagged the broader S&P 500, which is nearing new highs.
The decline in Nvidia’s stock price coincides with rising geopolitical concerns and possible new U.S. restrictions on semiconductor exports to China. Reports that Nvidia Executive Vice President Jay Puri met with Chinese Vice Minister of Commerce Wang Shouwen have spurred market speculation.
The meeting raised concerns about the impact of further trade restrictions while highlighting Nvidia’s dependence on China as a major market. Investor sentiment has turned cautious as the Biden administration is expected to announce further export restrictions in the coming weeks, including a possible ban on high-performance chips.
Wall Street’s take on NVDA stock
Despite these short-term challenges, Nvidia’s long-term prospects remain strong. As a leading artificial intelligence, gaming and data center technology company, the company is well positioned to take advantage of long-term growth trends.
Wall Street expects NVIDIA to deliver impressive 54% revenue growth in 2025 due to surging demand for AI chips and continued momentum in its core markets.
Wall Street analysts remain optimistic about Nvidia’s future. The consensus 12-month price target is $175.00, implying 29.3% upside from current levels. The most bullish analyst has a target of $220.00, while the most conservative values the stock at $135.00, about the current price.
Of the 44 analysts covering Nvidia, 40 rate the company as a “buy,” four rate it as a “hold,” and none recommend it as a sell.
While geopolitical uncertainty and market volatility pose short-term risks, many analysts see NVIDIA’s current price as an attractive entry point for long-term investors.
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