Nvidia shares are stuck. How the AI juggernaut can break its funk
CNBC • • business
Key Points:
- Nvidia's stock has underperformed its AI peers over the past year, rising about 38% compared to Alphabet's 77% and AMD's 91%, and is down 2.6% year to date, despite strong product announcements and demand.
- Analysts attribute Nvidia's recent weak performance to concerns over AI profitability, competition from Big Tech, and fears of circular AI investing, but maintain a bullish outlook with price targets up to $275, citing the company's robust product pipeline and strong market positioning.
- Veteran analysts recommend building or adding to Nvidia positions during current or potential price weakness, viewing the stock's valuation as more attractive after its peak during the AI boom and emphasizing the early stage of the AI chip market.
- Upcoming catalysts for Nvidia
