Nvidia (NVDA) Stock: Wall Street Makes the Case for Buying the Dip

TLDR

• Nvidia stock dropped 3% after Q3 earnings despite strong results and guidance, as investors worry about high valuations in the AI market
• Evercore analyst Mark Lipacis raised his price target to a street-high $352, representing 95% upside potential from current levels
• Blackwell chip revenue jumped nearly 50% quarter-over-quarter to over $13 billion as supply improves
• Wall Street’s average price target increased to $250 after earnings, up from $234 before the report
• Foxconn announced a $1.4 billion Nvidia-powered supercomputing center launching in first half of 2026

Nvidia shares fell 3% on Thursday following the company’s Q3 earnings report. The stock closed down another 1% on Friday at $178.91.

NVIDIA Corporation, NVDA

The selloff came despite strong financial results and upbeat guidance from management. Investors appeared concerned about high valuations in the AI chip sector.

Wall Street analysts increased their price targets after reviewing the quarterly results. The average target price now stands at $250 according to FactSet. This represents an increase from the $234 average before the earnings announcement.

Mark Lipacis at Evercore ISI set a new street-high price target of $352. He maintained his Buy rating on the stock. The target implies 95% upside from current levels.

Blackwell Revenue Growth Accelerates

Blackwell revenue increased nearly 50% quarter-over-quarter. The segment generated more than $13 billion as supply of GB200 and GB300 chips improved.

Nvidia is building inventory to support larger customer orders. The company’s inventory rose 32% quarter-over-quarter. Supply commitments jumped 63% during the same period.

Lipacis believes this positioning could help Nvidia reach its $500 billion goal for data center compute orders. The target spans 2025 and 2026.

He estimates Nvidia has recognized roughly $110 billion from its current compute pipeline. This leaves more than $390 billion ahead over coming quarters.

The analyst expects revenue growth to accelerate from 56% in mid-2025 to 79% in mid-2026. This projection is based on the remaining pipeline converting to recognized revenue.

Valuation Analysis Points to Opportunity

Nvidia currently trades near 25 times forward earnings. Lipacis noted this represents a 30% discount to the stock’s long-term average of 35 times.

He views the recent pullback as a chance for long-term investors to add exposure. The stock is trading below its usual valuation range.

Truist Securities analyst William Stein addressed bubble concerns in a research note. He pointed to Nvidia’s comments about chip utilization as evidence the market remains healthy.

Nvidia noted its A100 chips started shipping six years ago. All units remain in the field running at 100% utilization.

UBS analyst Timothy Arcuri maintained a Buy rating with a $235 target. He projects earnings per share around $11 for 2027 versus the Street estimate of $8.50.

Foxconn announced Friday it is building a $1.4 billion supercomputing center with Nvidia. The facility will come online in the first half of 2026 powered by Nvidia GB300 NVL72 systems.

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