On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The issuing of more shares shouldn’t be regarded as a negative development, and we still don’t know if it will even happen. While shares are down today, positive market momentum will soon push Nvidia back into the green. Overall, the recent declines from NVDA stock should be seen as a buy-the-dip opportunity. “This chipmaker will remain a winning investment, thanks to robust demand from existing end-users, plus trends like the metaverse,” he stated. Indeed, 20 analysts still maintain buy ratings and bullish price targets.Īdditionally, InvestorPlace’s Louis Navellier gives NVDA an A rating in his portfolio grader and sees prices surpassing $300. The analyst rating consensus on TipRanks is that NVDA stock is a strong buy. While it’s been a difficult year for Nvidia stock, the aforementioned bearish analysts are a minority. However, it’s likely that if Nvidia receives the approval it needs, investors will see the share increase as an opportunity to buy the dip on a tech stock with plenty of potential due to its multi-sector applications. Current investors may not be happy at the news. Yes, doubling shares will likely dilute stock prices. As InvestorPlace contributor Faizan Farooque noted, the increasing popularity of VR and metaverse tech will only increase producer reliance on different types of chips. Nvidia’s metaverse applications have compelled many experts making bullish cases for it. And with the metaverse rising as a defining market trend of 2022, gaming producers are busier than ever. Semiconductors are key components in both gaming and electric vehicle (EV) production. While it’s no secret that the supply chain crisis has posed constraints for both chip producers and buyers, it’s hard to imagine demand declining by too much. If that’s true, it is certainly bad news for Nvidia, a company that deals primarily in GPU production. This may be seen as an indication that Wall Street is souring on what was recently hailed as a breakout stock. Gerra noted that his team believes that “cancellations recently started in consumer graphic processing units (GPUs)” and that consumer demand is slowing. Baird downgraded his rating for NVDA to a “hold” and lowered his price target from $360 to $225.

It doesn’t help that more recently, Tristan Gerra of Robert W. While he maintained a “buy” rating on NVDA stock, this lower target is difficult to ignore. Before Nvidia announced its plan to double shares, Truist analyst William Stein lowered his price target from $347 to $298.

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