Wall Street expert says Nvidia stock is undervalued

Core Viewpoint - Nvidia's stock is considered 'undervalued' despite reaching a record high, with significant revenue potential that is not fully recognized by investors [1][2]. Group 1: Analyst Insights - Bank of America Semiconductor Analyst Vivek Arya believes Nvidia's valuation does not reflect its growth potential, especially in comparison to peers [1]. - Arya emphasizes that high-multiple stocks like Nvidia can signal greater future growth opportunities, even when they appear expensive [2]. - The analyst raised Nvidia's price target from $165 to$190, labeling it a "generational opportunity" [3]. Group 2: Market Sentiment - A report indicated that 93% of analysts maintain a 'Buy' rating for Nvidia, driven by the anticipated success of its Blackwell chips, which are experiencing high demand [3]. - Nvidia's share price has shown volatility, closing down 2.8% recently but up nearly 190% year-to-date [4]. - Analysts suggest that reclaiming the $140 level is crucial for validating Nvidia's recent strength, with a potential target of$150 [4]. Group 3: Future Expectations - If Nvidia reports better-than-expected Q3 2024 results, the stock could target $200, with Bank of America already setting a target of$195 [5].