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Nvidia stock is in correction territory, which occurs when shares fall 10% from their peak.
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Despite the recent decline, analysts remain optimistic about the chip manufacturer in the long term.
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The company’s shares took a mild hit last week after Chinese regulators said they would investigate the company for possible violations of anti-monopoly laws.
Nvidia (NVDA) Shares entered correction territory on Monday, but analysts are still optimistic about the chip manufacturer.
Nvidia shares fell 2% intraday Monday to $131.48 and are down about 12% since their all-time high of $148.88 on Nov. 7. It is believed that a technical correction occurred as shares fell 10% from their peak.
Despite the recent slump, investors don’t seem concerned in the long term. Analysts at Bank of America and Bernstein each called Nvidia a “top pick” on Monday, with price targets of $190 and $175, respectively. The consensus price target among 20 brokers covering Nvidia followed by Visible Alpha is around $176.
Bernstein analysts acknowledged “recent anxiety” caused by Nvidia’s shift from Hopper to Blackwell chips, but noted that “2025 looks likely to be an extremely good year.”
Nvidia shares took a mild hit last week after China’s State Administration for Market Regulation said it was investigating the company for possible violations of the country’s anti-monopoly laws related to its 2020 acquisition of networking hardware maker Mellanox Technologies. Still, Nvidia shares are up 165% through 2024.
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