Nvidia stock (NVDA) was on track Friday for a weekly loss of nearly 2% as investors continue to sort through what’s been a challenging last several weeks for the year’s hottest trade.
But Wall Street analysts this week remained confident in the long-term prospects for Nvidia, which is now down about 20% over the last month and off more than 25% from its record closing high.
Earlier this week, Piper Sandler analysts called out a “tremendous opportunity” to buy Nvidia, AMD (AMD), and ON Semiconductor (ON) following the sector’s recent sell-off.
Some analysts also took the opportunity to upgrade the stock during this sell-off.
“I think that for 2025 … things are fairly well set,” New Street Research technology infrastructure analyst Antoine Chkaiban told Yahoo Finance on Thursday. “We know roughly how much [hyperscalers] expect to grow capex. Plans are already set.” New Street upgraded Nvidia to a Buy this week with a $120 price target.
On Friday, chip manufacturer TSMC (TSM), a supplier to Nvidia, posted a 45% year-over-year increase in sales in July — a sign that AI demand remains strong.
“We still sense an urgent demand across the board, and that mitigates the risk in a pause in shipments as customers wait for the next generation of chips to be available in volumes,” said Chkaiban.
The so-called hyperscalers — Microsoft (MSFT), Meta (META), Amazon (AMZN), and Alphabet (GOOG, GOOGL) — each remained consistent during recent earnings reports in their commitment to AI investment. And much of this investment flows right to Nvidia.
“Investors will likely revisit the AI-levered names because that within [semiconductors] is still the one area spending is flowing in terms of customer spending as evidenced by increases in capex by multiple hyperscalers this earnings period,” Jefferies analyst Blayne Curtis told Yahoo Finance on Friday.
Talk of a possible delay for Nvidia’s Blackwell next-generation chip put added pressure on the stock earlier this week. A two-month wait for the chips wouldn’t be inconsequential, analysts say, but it would still not be enough to…
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