Nvidia (NVDA) Stock Pulls Back 7% — Analysts Still See 35% Upside

TLDR

• NVDA is trading around $198, down 6.9% over the past five sessions after failing to hold above $200
• Partner Foxconn reported 30% April revenue growth, citing strong AI server demand
• Analysts have an average price target of $269.82, implying roughly 35% upside from current levels
• NVDA trades at a forward P/E of ~22x, well below AMD’s 40x+
• Earnings are scheduled for May 20; Wall Street consensus is a “Buy” with 48 analysts backing that rating

Nvidia stock opened Tuesday at $198.51, sitting roughly 6.9% below where it was five sessions ago.

NVIDIA Corporation, NVDA

The stock broke out of its $165–$195 trading range last week on semiconductor sector enthusiasm, then quickly pulled back. The $200 level has been a sticking point.

Investors may need to wait until May 20 — Nvidia’s next earnings date — before the stock finds a clearer direction.

Foxconn, one of Nvidia’s key Taiwanese partners, added some fuel on Tuesday. The company posted 30% April revenue growth year-over-year, driven by AI servers and cloud networking products.

That’s a meaningful data point. Foxconn’s largest business segment is now cloud and networking — not Apple devices.

Valuation Stands Out vs. Peers

At a forward price-to-earnings ratio of around 22x, Nvidia looks cheap compared to AMD, which trades above 40x ahead of its own earnings report Tuesday after the close.

The average analyst price target sits at $269.82, according to FactSet — that’s about 35% above current levels.

Of 54 analysts tracked by MarketBeat, 48 rate the stock a “Buy,” four say “Strong Buy,” and just two have it at “Hold.” No sells.

Morgan Stanley has a $260 target. Wolfe Research sits at $275. New Street Research trimmed its target from $307 to $275 but kept its “Buy” rating.

Headwinds Worth Watching

It’s not all green lights. CEO Jensen Huang acknowledged that Nvidia currently has “zero market share in China,” a direct consequence of U.S. export controls on advanced chips.

There’s also some noise around customers exploring alternatives. Anthropic is reportedly in talks with chip startup Fractile, and Cerebras is eyeing an IPO — signs that some buyers are at least testing the waters elsewhere.

On the insider front, CFO Colette Kress sold 20,000 shares in March at $174.89, a 19.41% reduction in her holdings. Director John Dabiri also trimmed his position in the same month.

Institutional investors, however, have been adding. PDS Planning lifted its NVDA position by 3.5% in Q4. Several other funds increased their stakes across Q3 and Q4.

Bernstein analysts described AI agent-driven chip demand as going “off the charts,” with supply struggling to keep up — a dynamic that directly supports Nvidia’s pricing power.

Nvidia’s last earnings report, released February 25, showed $1.62 EPS, beating estimates of $1.54. Revenue came in at $68.13 billion, up 73.2% year-over-year.

The company carries a market cap of $4.82 trillion, a debt-to-equity ratio of just 0.05, and a 12-month high of $216.82.

All eyes now turn to May 20.

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