Nvidia (NVDA) Weakness Seen as Buying Opportunity, Analyst Says

NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 AI Stocks Gaining Attention on Wall StreetOn February 2, Bank of America reiterated the stock as “Buy” with a $275 price target. The firm said that investors should buy any weakness in shares.

“Our $275 PO is based on 28x CY27E PE ex cash, within NVDA’s historical 25x-56x forward year PE range, which we believe is justified by NVDA’s leading share in fast-growing AI compute/networking markets, offset by lumpiness in global AI projects, cyclical gaming market, and concerns around access to power.”

In other news, Nvidia CEO Jensen Huang recently announced that Nvidia will participate in OpenAI’s latest funding round, making “the largest investment we’ve ever made.”

“We will invest a great deal of money,” Huang told reporters at the event. “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.”

Nvidia (NVDA) Weakness Seen as Buying Opportunity, Analyst Says

Analysts on Wall Street have a consensus “Buy” rating on the stock. The average price target of $250 implies a 33.6% upside; however, the Street-high target of $432 implies an upside of 131.28%.

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.