Nvidia (NASDAQ: NVDA) closed Monday at $135.34, down 1.15%, with the stock briefly falling to $132.08 during intraday trading before managing to recover slightly by the end of the session.
Despite this small rebound, Nvidia is struggling to maintain momentum and now finds itself near the lower end of its recent trading range.
At its current valuation, Nvidia’s price-to-earnings (P/E) ratio stands at a lofty 61x, reflecting the market’s long-standing premium for the company. Interestingly, this matches the relative valuation seen when Nvidia was trading at just $15 in 2021.
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The forward P/E ratio, now at 30.9x, suggests that investors remain confident about Nvidia’s ability to deliver robust 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 notably wide range. Now hovering near the lower end, Nvidia shares are approaching critical support levels between $131.60 and $135.33, underpinned by key trend lines and moving averages.
On the flip side, resistance is evident between $147.64 and $148.89, a range the stock must overcome to regain upward momentum. While NVDA is still trading within the upper part of its 52-week range, it is notably lagging behind the broader S&P 500, which is nearing fresh highs.
The pullback in Nvidia’s stock price coincides with rising geopolitical concerns and the potential for new U.S. restrictions on semiconductor exports to China. Reports that Nvidia’s executive vice president, Jay Puri, met with China’s Vice Commerce Minister Wang Shouwen have added to market speculation.
The meeting highlights Nvidia’s reliance on China as a major market while raising concerns about the impact of further trade restrictions. With the Biden administration expected to announce additional export limitations in the coming weeks, including potential bans on high-performance chips, investor sentiment has turned cautious.
The view on Wall Street for NVDA shares
Despite these short-term challenges, Nvidia’s long-term prospects remain strong. As a dominant player in artificial intelligence, gaming, and data center technologies, the company is well-positioned to capitalize on secular growth trends.
Wall Street expects Nvidia to achieve a remarkable 54% revenue growth in 2025, driven by surging demand for its AI chips and continued momentum in its core markets.
Wall Street analysts remain optimistic about Nvidia’s future. The consensus 12-month price target stands at $175.00, suggesting a 29.3% upside from current levels. The most bullish analysts project a target as high as $220.00, while the most conservative view places the stock at $135.00, essentially at parity with its current price.
Among the 44 analysts covering Nvidia, 40 rate it a “Buy,” while four issue “Hold” ratings, and none recommend selling.
While geopolitical uncertainties and market volatility pose near-term risks, many analysts see Nvidia’s current price as an attractive entry point for long-term investors.
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