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Despite recent market volatility and geopolitical concerns, Bernstein analysts maintain their bullish stance on Nvidia (NVDA), describing the opportunity as “enormous” and arguing that the AI revolution is still in its early stages.
According to Bernstein, Nvidia is beginning a new product cycle with its groundbreaking Blackwell GPUs, which are experiencing unprecedented demand. The investment firm has a target price of $185 for NVDA stock, above the current price near $145.
Nvidia’s Blackwell chips are reportedly sold out for the next year, with supply-demand imbalances expected to persist throughout 2025. This tight supply environment supports pricing power and is likely to translate into revenue growth for the coming quarters.
The chip maker’s technological leadership has enabled it to control over 90% of the GPU market, supplying critical hardware to tech giants such as Microsoft (MSFT), Google (GOOGL), Meta (META), and Tesla (TSLA).
Nvidia Is Expanding in Several Growth Markets
Nvidia is at the forefront of addressing the global labor shortage crisis, with 50 million unfilled positions across the manufacturing and logistics sectors. Through a strategic partnership with Hexagon, Nvidia is enabling the development of AEON, an advanced humanoid robot designed for industrial applications.
AEON leverages Nvidia’s robotics ecosystem. AI supercomputers train foundation models, while the Omniverse platform provides simulation environments for testing and optimization.
Finally, robotic computers execute the models in real-world applications. This integrated approach accelerates development timelines, with AEON mastering core locomotion skills in just a few weeks.
The humanoid robot addresses critical industry needs, including reality capture, manipulation tasks, part inspection, and complex industrial operations.
And importantly for investors, Nvidia’s innovative work in humanoid robotics is just one small piece of the pie. It also offers investors exposure to data centers, high-performance computing, sovereign AI, autonomous vehicles, gaming, and more.
Is NVDA Stock Still Undervalued?
After a pullback in 2025, Nvidia’s valuation has reset to decade-long lows relative to projected earnings. Today, the tech stock trades a 33.6x forward earnings, below its 5-year average of 49.2x.
Bernstein maintains an “Outperform” rating, emphasizing that fears of the AI trade being “over” are premature. With the global AI industry expected to grow at a 42% compound annual rate over the next decade and Nvidia maintaining its technological moat, Bernstein believes the growth story remains in its infancy.
Out of the 44 analysts covering NVDA stock, 37 recommend “Strong Buy,” three recommend “Moderate Buy,” three recommend “Hold,” and one recommends “Strong Sell.” The average target price for Nvidia stock is $174, indicating an upside potential of over 20%.
