Nvidia (NVDA) Stock: Why Wall Street Still Loves It at Five-Month Lows

TLDR

• Nvidia stock has traded sideways since August, hovering near the same price levels despite a 3% gain Wednesday
• Investors are rotating away from megacap tech stocks toward smaller AI plays like Micron Technology and Applied Materials, plus Intel’s recovery bet
• Nvidia’s market cap growth makes it harder for many investors to increase positions, according to UBS analyst Timothy Arcuri
• KeyBanc analyst maintains $275 price target, noting Nvidia trades at 24x fiscal 2027 earnings versus three-year median of 30x
• CEO Jensen Huang told Davos that Europe has a rare chance to lead robotics by combining manufacturing strength with physical AI

Nvidia shares ended Wednesday up 3% but remain trapped in a five-month holding pattern. The stock sits near the same levels it traded at in August 2025.

NVIDIA Corporation, NVDA

The stagnation comes as investors shift their AI bets. Instead of piling into Nvidia, traders are favoring smaller chip companies.

Micron Technology has attracted fresh money in the memory sector. Applied Materials has seen gains as a semiconductor equipment maker. Intel has emerged as the top performer on recovery hopes.

The trend extends beyond Nvidia. The Roundhill Magnificent Seven ETF, which holds Nvidia and other megacap tech stocks, hit its lowest ratio versus the S&P 500 since September 2 on Wednesday.

Wall Street Sees Buying Opportunity

Despite the flat performance, analysts view Nvidia’s pause as a chance to buy before the next move higher. KeyBanc analyst John Vinh reiterated his $275 price target and Overweight rating this week.

Vinh pointed to valuation as a key factor. Nvidia trades at 24 times fiscal 2027 earnings estimates. That’s below its three-year median of roughly 30 times.

Wall Street maintains a Strong Buy consensus on the stock. Of 41 analysts covering Nvidia, 39 rate it Buy, one says Hold, and one recommends Sell.

The average price target sits at $263.44. That implies 43.7% upside from current levels.

Europe’s Robotics Moment

At the World Economic Forum in Davos, CEO Jensen Huang outlined a new opportunity for Europe. He said the region has a “once-in-a-generation” chance to lead in robotics.

Huang argued Europe can leverage its industrial manufacturing heritage. By combining that expertise with modern AI, Europe could jump straight into “physical AI” without going through a software-first phase.

He cited Siemens, Mercedes-Benz, Volvo, and Schaeffler as examples of European companies already investing in robotics and AI-driven manufacturing.

The CEO noted strong competition from U.S. tech giants. Tesla CEO Elon Musk has said 80% of his company’s future value could come from Optimus humanoid robots. Google’s DeepMind has released robotics AI models, and Nvidia is partnering with Alphabet on physical AI development.

Huang warned Europe faces obstacles. High energy costs and limited power supply could hamper progress. He urged policymakers to boost energy capacity to support data centers, AI factories, and robotics infrastructure.

Nvidia shares were up 0.3% in after-hours trading Wednesday.

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