Wall Street analysts are debating where Nvidia stock will go next after its recent fall from dizzying heights.
Truist Securities analyst William Stein late Wednesday reiterated his buy rating on Nvidia stock and raised his price target to 140 from 128.80. That target is just below the stock's all-time high of 140.76, reached on June 20.
Stein said conventional wisdom holds that Nvidia stock upside could be limited owing to trading and technical challenges related to the company's high market capitalization.
Last week, Nvidia was briefly the world's most valuable company with a market cap reaching nearly $3.5 trillion intraday on June 20. But on Thursday, Nvidia was valued at $3.05 trillion, putting it in third place behind Microsoft at $3.37 trillion and Apple at $3.28 trillion.
"Our analysis shows that becoming the largest company by market cap does not appear to systematically challenge future investment returns," Stein said in a client note.
Nvidia Stock Called Best AI Play
He added that demand for Nvidia's next-generation graphics processors for data centers, the Blackwell series, is broadening. That opinion is based on feedback from industry contacts, he said.
"We continue to favor Nvidia as the best way to invest in the AI theme," Stein said.
Elsewhere on Thursday, investment banks Cantor Fitzgerald and Citi also upped their price targets on buy-rated Nvidia stock. Cantor increased its price target to 175 from 140. Citi lifted its target to 150 from 126.
On the stock market today, Nvidia stock slid 1.9% to close at 123.99.
Other analysts are more skeptical about prospects for Nvidia stock. Morningstar rates Nvidia stock as hold with a price target of 105. Deutsche Bank rates NVDA stock as hold with a target of 100.
Nvidia Is On Four IBD Stock Lists
On Wednesday, Nvidia held its annual shareholder meeting. At the event, Chief Executive Jensen Huang laid out Nvidia's strategy to maintain its position amid rising competition.
Huang said the company has transformed into a data center-focused company from its previous gaming focus, CNBC reported.
Nvidia stock is on four IBD stock lists: IBD 50, Leaderboard, Sector Leaders and Tech Leaders.
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