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Nvidia stock has entered correction territory, which occurs when shares fall 10% from their peak.
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Despite the recent slide, analysts remain bullish on the chipmaking giant long term.
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The company’s stock took a slight hit last week after Chinese regulators said they would investigate the company for potential violations of anti-monopoly laws.
Nvidia (NVDA) stock slipped into correction territory Monday, but analysts are still bullish on the chipmaking giant.
Nvidia shares fell 2% intraday Monday to $131.48 and are down about 12% since their record closing high of $148.88 on Nov. 7. A technical correction is considered to have occurred when shares dropped 10% from their peak.
Despite the recent slump, investors don’t seem to be worried in the long term. Analysts at Bank of America and Bernstein each called Nvidia a “top pick” Monday, posting price targets of $190 and $175, respectively. The consensus price target among 20 brokers covering Nvidia tracked by Visible Alpha is about $176.
Bernstein analysts acknowledged “recent angst” caused by Nvidia’s shift from Hopper to Blackwell chips, but noted that “2025 seems likely to be an exceedingly good year.”
Nvidia stock took a slight hit last week after China’s State Administration for Market Regulation said it is investigating the company for potential violations of the country’s anti-monopoly laws related to its 2020 acquisition of networking hardware maker Mellanox Technologies. Still, Nvidia stock is up 165% in 2024.
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