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Nvidia Stock Roars Back to Life After Scary Drop
Nvidia (NASDAQ: NVDA) stock has made a remarkable recovery after a significant drop earlier in April. The stock fell by 16% from April 11 to 19, with a 10% drop in a single day, leading to concerns about its future. However, the stock quickly rebounded, rising 15% in a week and recovering almost all of its losses. Analysts continue to issue bullish outlooks for the company, favoring it as a best-in-class semiconductor play.
Despite the stock's meteoric rise since the current bull market began in October 2022, analysts see more upside ahead for Nvidia. The median price target on NVDA stock among 41 Wall Street analysts is $1,004 per share, 15% higher than its current trading price. The consensus rating on Nvidia stock is a "strong buy," with 39 analysts giving it a "buy" rating and two a "hold" rating. There are no "sell" ratings on NVDA stock at present.
Analysts are bullish on Nvidia stock for several reasons, including the company's strong recent earnings, its introduction of next-generation AI microchips, and its plans to build a $200 million AI center in Indonesia. Nvidia's continued dominance of the market for chips that power AI applications, with a share of between 75% and 80%, also contributes to analysts' positive outlook.
With Nvidia stock having risen more than 1,800% in the last five years, analysts and investors alike remain extremely bullish on the company's future. The company's strong demand for chips, exceptional earnings growth, and new products are expected to keep it ahead of its competitors. Overall, Nvidia stock is considered a buy.
