Nvidia is trading at one of the lowest points it has seen in ten years, and Bernstein is basically telling retail investors to stop overthinking and pay attention.
The company’s analysts said that the NVDA stock now sits at 25-times forward earnings, which drops it into the 11th percentile of its valuation range over the past decade. That alone is wild. It gets even wilder when you add that Nvidia is also trading at a 13% discount to the PHLX Semiconductor Sector Index, which almost never happens.
Bernstein said Nvidia has only reached valuation levels this low on 13 trading days across ten full years. Analyst Stacy Rasgon put it simply in the note: “25 P/FE may not seem particularly cheap for your ordinary stock. But this is NVIDIA.”
The stock is still up 34% in 2025, beating the S&P 500’s 16% gain, but it trails the PHLX Semiconductor Index, which is up 41% this year.
Nvidia has also slipped about 7% over the last month as investors freak out about heavy spending and demand questions around GPUs. But its earnings keep beating expectations, and that is why Bernstein said the stock remains a buy heading into the new year.
Rasgon wrote, “While we understand some of the AI angst that has affected the sector lately, we believe Nvidia is set up well into the new year,” adding that “investors buying Nvidia’s stock at current levels have historically done very well.” Bernstein kept its outperform rating and set a $275 price target for the stock.
Regulators clear Intel deal as Nvidia pushes deeper into the chip race
U.S. antitrust agencies cleared Nvidia’s $5 billion investment in Intel, which was first announced in September, according to a notice posted by the Federal Trade Commission.
Meanwhile, investors have spent months worrying about Nvidia’s high capital spending tied to massive GPU buildouts, but the Intel investment proves that Jensen Huang is still stacking alliances, boosting capacity, and making sure he does not lose ground in the semiconductor race.
Nvidia also picked up support from Tigress Financial Partners, which raised its price target to $350 and kept a Strong Buy rating.
Tigress said Nvidia still holds a leading role in full-stack AI systems, accelerated computing, and growth areas like robotics, medical imaging, and autonomous driving.
That $350 target now sits at the top end of Wall Street estimates. Numbers from Yahoo Finance show an average price target around $195, with analyst expectations ranging from $140 to $352.
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Source: https://www.cryptopolitan.com/bernstein-nvidia-is-historically-undervalued/
