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.

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.