Brian Evans
March 3rd, 2025
CNBC
There is an end in sight to Nvidia’s recent rough patch, and that means now could be a plum buying opportunity for shares of the artificial intelligence darling, according to Bank of America.
″[W]e believe the stock is providing a particularly attractive opportunity for one of the most unique, high-quality tech franchises leading the largest and fastest growing secular trends,” analyst Vivek Arya wrote in a Wednesday note. The firm’s buy rating and $200 per share price target imply nearly 76% upside from Wednesday’s close.
Shares have pulled slipped more than 15% so far in 2025. March has been especially difficult for Nvidia, which is off nearly 9% during the period as jittery investors shy away from last year’s Big Tech high flyers.
One of the major near-term headwinds lingering over Nvidia stock is the May 15 compliance deadline for the AI diffusion rule. The framework, first introduced in the final days of the Biden administration, is meant to control global AI development by limiting the export of chips from companies such as Nvidia to an approved list of countries. An industry group representing firms such as Amazon, Meta Platforms and Microsoft has urged President Donald Trump to loosen some of the rules before the deadline.
However, the effect that the still unknown final ruleset has had on Nvidia stock may have been overblown, Bank of America’s Arya said. He expects the stock to rebound sharply once some clarity is provided by the Trump administration.
“Once the geopolitical concerns are sized and priced, we expect NVDA to recover, much like the relative recovery we have seen in semicap stocks this year once China exposure was reflected in wafer fab [wafer fabrication] equipment spending,” he said.