Is Nvidia a Good Buying Opportunity at the Moment?

Last Friday, Nvidia’s stock continued its downward trend, dropping more than 4% to $102.83.

Over the week, shares of the tech giant have plummeted 14%, dragging down the wider U.S. technology sector. This sell-off in tech stocks has also affected the crypto market, with Bitcoin and other altcoins undergoing notable corrections.

Despite the slump, Fundstrat analyst Tom Lee views the dip as a potential buying opportunity. During an appearance on CNBC’s Closing Bell, Lee suggested that Nvidia’s recent decline might signal a favorable moment for investment.

Are these sell-offs in Nvidia a buying opportunity? @Fundstrat‘s Tom Lee makes the case $NVDA pic.twitter.com/dVykj0g5ub

— CNBC’s Closing Bell (@CNBCClosingBell) September 6, 2024

He noted that Nvidia has experienced similar 30% pullbacks in the past, often followed by higher valuations. Currently, the stock’s price-to-earnings ratio stands in the mid-20s, which Lee considers reasonable.

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Lee’s perspective aligns with Bank of America’s bullish outlook, which targets Nvidia stock at $165. The recent tech sell-off, combined with a $406 billion drop in Nvidia’s market capitalization and a DOJ antitrust probe, has heightened market volatility.

Despite these challenges, Nvidia has dismissed concerns related to the DOJ’s subpoena and is prepared to cooperate with regulators if needed.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.