Nvidia (NVDA, Financial) shares have fallen about 9% year-to-date, despite the chipmaker's continued leadership in the semiconductor industry. Bank of America's five-star analyst Vivek Arya said on Yahoo Finance's Opening Bid podcast that the decline partly reflects a shift in capital from large-cap tech names like Nvidia to international markets, where investors are searching for more attractive valuations.
Arya remains optimistic about Nvidia's fundamentals, keeping a Buy rating on the stock and setting a price target of $200.
The company recently showcased new AI hardware at its GTC 2025 conference, including the Blackwell Ultra and Vera Rubin chips. Chief Executive Jensen Huang also outlined aggressive growth plans, suggesting Nvidia's data center infrastructure business could generate $1 trillion in revenue by 2028. The company also teased its upcoming Feynman chip and detailed a broader product roadmap through the end of the decade.
Still, shares have shown little movement, even with the announcements. Some investors may be waiting for more real-world AI use cases to emerge before reentering the stock.
Eric Jackson of EMJ Capital said Nvidia's next rally could be sparked by its customers. Companies like Palantir (PLTR, Financial) and Klarna, he said, are already offering early glimpses of how artificial intelligence can deliver measurable results. More of those success stories could reignite chip demand—and Nvidia's stock.
