Despite the drop, some Wall Street experts see this as a buy-the-dip opportunity. Constellation Research founder R "Ray" Wang and Bank of America analyst Vivek Arya both believe the sell-off will be short-lived and have expressed bullish views on the company. Wang has a $200 price target on Nvidia, citing seven moats the company has to defend and grow its business amid the ongoing AI boom. Nvidia's stock rebounded by about 3% in Tuesday's trading session.
Key takeaways:
- Nvidia stock has seen a significant decline of 16% in the past week, erasing $431 billion in market value.
- Despite no fundamental news, analysts believe the decline is due to investors taking profits after Nvidia's substantial rise in the past year.
- Some Wall Street experts, including Constellation Research founder R "Ray" Wang, see the swift drop as a buy-the-dip opportunity.
- Nvidia CEO Jensen Huang has sold 720,000 shares since June 13 via scheduled 10b5-1 stock sales, but still owns nearly 81 million shares of the company.