Bernstein has taken a counter-trend view of NVIDIA stock, although other investors say valuations have grown due to pressure on broader AI trade and tariffs on sentiment and price reductions. In fact, Stacy Rasgon, managing director and senior analyst at Bernstein, believes that Nvidia’s valuation is an opportunity for investors to buy, and the stock is now trading around 25 times over the next twelve months or NTM, or the estimated earnings of NTM. Rasgon said it was the lowest forward valuation level of the year for NVIDIA, close to a 10-year low. “It’s too early for us to worry about AI trading, and valuations are becoming more and more attractive,” Lasgon said. “At the moment, people are obviously hudging on the AI ​​group. But spending intentions seem to continue to rise, the product cycle is just beginning, and we have GTC coming in a few weeks.” GTC refers to NVIDIA’s GPU technology conference, an AI conference for researchers, developers, engineers and investors. Lasgon said investors typically buy NVIDIA at a 25x NTM price-to-earnings ratio, with an average return of 150% over the past decade. Bernstein scored NVIDIA both better than the price target of $185 per share, meaning a 62% upside. NVIDIA shares have been close to 14% so far in 2025. Earlier Tuesday, the decline was close to 17%. NVDA YTD Mountain Nvidia in the past year. “It’s clear that Blackwell’s introduction didn’t go as smoothly as the company hoped, and there is still an increase in volatility given the way laser-focused investors are on this supply chain,” Rasgon warned that the potential Bernstein’s closest attention is how President Donald Trump’s export restrictions on China will eventually prove. “In terms of its value, every ~10b of NVDA earnings per share will be calculated approximately 25 cents; the entire Chinese data center ban could affect EPS (the baseline of $5-6?) of medium to high unit numbers, and the stock has shrunk a lot,” Lasgon said. “There are issues with AI applications and project demand levels recently. Microsoft recently cut some of its data center rentals, getting rid of its most ambitious expansion plans and said companies supporting OpenAI may reevaluate future growth in generating AI.
Cheap? According to Bernstein, NVIDIA valuation is close to a 10-year low | Real Time Headlines
RELATED ARTICLES