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Investing.com -- Nvidia (NASDAQ:NVDA) shares inched up 0.5% in premarket trading as Wall Street analysts deemed the AI chipmaker’s stock to be trading at an attractive valuation following a recent pullback.
BofA Securities maintained a buy rating and a price target of 200 on Nvidia stock on Wednesday, highlighting the company’s potential ahead of its GPU Tech Conference (GTC) scheduled for next week.
At the upcoming GTC, Nvidia is anticipated to unveil updates on its Blackwell Ultra and Rubin processors, alongside advancements in next-generation networking technology. The conference will also cover the company’s long-term opportunities in markets such as autonomous vehicles, physical AI, robotics, and quantum computing.
The positive sentiment is a turnaround after Nvidia’s shares retreated by 27% over the past three weeks.
Katie Stockton from Fairlead Strategies provided a technical perspective, stating, "NVIDIA gapped up yesterday in what appears to be a breakaway gap to the upside, with bullish implications for the next couple weeks.
The gap follows a 27% downdraft from February’s high, and when gaps up unfold after such strong downmoves, they often reflect a short-term pivot. Initial resistance for NVDA is near $130."
Investors seem to be responding to the combination of Nvidia’s strategic positioning and its current stock price, which some analysts find compelling.
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