tech
January 14, 2026
What's wrong with Nvidia? Why shares of the AI juggernaut are struggling and whether it can break out of its funk
Wall Street isn't shying away from Nvidia despite its dull performance in recent months. Instead, its current valuation is making the chipmaker a hot pick.
TL;DR
- Nvidia's stock has recently underperformed AI peers, losing steam despite announcing new products and partnerships.
- Analysts view Nvidia's current stock levels as an attractive bet due to a significantly reduced valuation from its AI boom peak.
- Concerns regarding AI profitability, GPU depreciation, and intensifying competition are considered overblown by veteran analysts.
- Nvidia's product pipeline, including the Vera Rubin platform, and strong demand for its GPUs are seen as key drivers for long-term growth.
- Analysts recommend investing in Nvidia during periods of weakness, with some setting price targets of $250 and $275 per share.
- The stock's valuation is considered attractive, trading at a discount to AI peers and exiting 'nosebleed territory'.
- Nvidia's strong and unchallenged positioning in AI data center markets, new product roadmaps, and software ecosystem are highlighted.
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