Are Nvidia stocks undervalued? Why analysts are seeing strong growth

Today’s Nvidia

$108.66 +1.68 (+1.57%)

1:46pm Eastern PM

This is a fair market value price offered by polygon.io. learn more.

52 Week Range $75.61

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$153.13

Dividend yield: 0.04%

P/E ratio 42.34

Price target $171.69

Headwinds aside, Nvidia’s outlook NASDAQ: NVDA Growth and long-term profitability cannot be denied.

AI is driving results. The company is expanding into a new industry and is expected to grow at a double-digit pace for at least the next decade.

Therefore, sales in the first quarter of 2025 are unusual and a purchase opportunity that is likely to increase in prices later this year.

If analyst consensus and data trends can be used as a guide, stocks are surprisingly undervalued, and are on track with a minimum of 50% upside this year.

Most analysts agree that Nvidia’s sale is overkill

Analyst data provided by MarketBeat includes reductions and downgrades in price targets, but over 90% have been bullish over the past 12 months. It includes numerous price target revisions and upgrades, with a 107% increase in consensus reported by MarketBeat, showing up nearly 60% upside in early March, with the high-end range adding an additional $50 or 30% upside.

Assuming future revenue reports are in line with trends that include revenue and guidance strength, analyst trends may continue to support sentiment.

Recent updates are from Wedbush, Wells Fargo, and Bernstein. They all note headwinds and policy uncertainties affecting stock prices, highlighting the long-term outlook for valuable opportunities and sustainable business power.

The upcoming GTC Developers Conference is a potential catalyst, including news such as optical/photonics, quantum computing, the launch of the new Blackwell Designs, and the release of Rubin.

Wedbush analyst Dan Ives looks at high-tech stocks including Nvidia NASDAQ: NVDATesla NASDAQ: TSLAMicrosoft NASDAQ: MSFTand Palantia NASDAQ: PLTRafter spending time calming the market, it hits a new high later this year.

Wells Fargo analyst Aaron Rakers says the GTC meeting won’t come soon enough, but Bernstein analysts brilliantly called the stock price from the beginning of the year early in the product cycle. They also highlighted multiyear values ​​related to the historical P/E multiples and the Philadelphia semiconductor index.

The agency’s activities coincided with analysts’ emotional trends, providing a strong tailwind for the NVDA market and do not take into account Nvidia’s overall market impact. The institution purchased NVDA in balanced form for the third consecutive quarter, after selling in the second quarter of 2024, and increased its activity in the first quarter.

This solid show of support shows that the group will buy for sale. Assuming this continues, the bottom of Nvidia’s inventory will soon be shown on the charts, potentially leading to a solid rebound later this year.

There is a catalyst that unlocks Nvidia’s value

Aside from the GTC Developer Conference, Nvidia’s most likely catalyst is in the upcoming FQ1 2026 revenue report. The company is projected to increase its annual revenue by 10%, 66%, which could be better than the consensus despite the hiber set by analysts.

Catalysts are in the open for outperformance and business updates, including new transactions, advances in semiconductor technology, and monetization of ongoing projects.

Regarding valuation, Nvidia’s price adjustments have reorganized the market, bringing the outlook for C2025 to about 24 times. This is close to 21 times the amount paid for the average S&P 500 company, offering almost no premium on growth prospects. The company is expected to increase revenues with double-digit CAGRs through 2035, with valuation below nine times by the middle of the next decade.

Nvidia is close to the bottom. There’s room for falling

Nvidia is nearing the bottom, but there is room for it to fall. Probabilistic indicators are one indication that the market bottom will soon be found and will be sold too much and enter the territory, but MACD disagrees.

It converges with recent lowest prices and suggests that even lower prices may come. This could lead to another decline, but the downside risk is limited as strong technical support exists at the $100 level.

I would like to hear this before considering Nvidia.

MarketBeat tracks the top rated and best-performing research analysts on Wall Street, as well as stocks they recommend to their clients every day. MarketBeat quietly whispered to clients before the broader market emerged, identifying five stocks to buy now…and Nvidia was not on the list.

Nvidia currently has a moderate purchase rating among analysts, but top rated analysts believe these five stocks are a better purchase.

Here we show 5 stocks

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