Nvidia (NASDAQ:NVDA) stock has not been immune to the market turbulence triggered by the Trump administration’s economic policies during the president’s second term. Just two weeks ago, NVDA’s share price briefly slipped below the $100 threshold – a level not seen since May 2024.
The Liberation Day tariff announcement on April 2 sparked a broad market selloff, while renewed restrictions on Nvidia’s H20 GPUs destined for China intensified investor concerns and contributed to further declines.
But the bounce back has been just as notable. Since bottoming out on April 21, Nvidia shares have rebounded by 21%.
Even so, the stock remains 17% lower year-to-date. That’s exactly why top investor Dair Sansyzbayev sees opportunity brewing, and believes this comeback story is just getting started.
“The developments are mostly extremely positive, and the stock is very attractively valued. I continue to dollar-average my position, which appears to be the most prudent approach in the current uncertain environment,” says Sansyzbayev, who sits in the top 3% of TipRanks’ stock pros.
According to his calculations, Nvidia’s fair value lands around $4.1 trillion, based on a 10% revenue CAGR and a 4% perpetual growth rate, implying 43% upside from today’s $2.86 trillion market cap. Even in a more conservative scenario, assuming just 5% revenue growth, the investor still sees the company’s valuation holding above $3 trillion.
“Nvidia’s valuation ratios look extremely attractive, as they are currently significantly lower compared to the company’s historical averages,” adds Sansyzbayev, who rates NVDA shares a Strong Buy.
Wall Street is just as enthusiastic. With 34 Buys, 5 Holds, and a lone Sell, Nvidia earns a Strong Buy consensus rating. Analysts are targeting $164.23 on average for the next 12 months, a projection that points to 40% upside from here. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.