Nvidia (NASDAQ: NVDA) inventory is nicely off its highs in the mean time. At present, it may be snapped up for $118, about 23% under its all-time excessive of $153. Is there a significant alternative to think about right here? One main Wall Road analyst appears to suppose so.

A ‘generational’ alternative

The analyst I’m referring to is Dan Ives from Wedbush Securities. A daily CNBC contributor (identified for his vibrant apparel), Ives is likely one of the best-known tech analysts on Wall Road.

Final week, he informed CNBC that he believes Nvidia is at the moment providing a ‘generational opportunity’ for buyers. He believes a whopping $2trn will likely be spent on the bogus intelligence (AI) buildout within the subsequent three years. And he sees Nvidia – which designs AI chips – as the first beneficiary. “We’re going to be talking about Nvidia at $4trn, $5trn over the coming years,” he mentioned. For context, the corporate has a market cap of $2.9trn as we speak.

In 25 years doing this, I can rely the instances which were nearly generational alternatives relative to what the inventory’s doing. That’s the place I believe Nvidia is right here.
Wedbush Securities tech analyst Dan Ives

My view

Do I agree with Ives? I’m undecided, to be trustworthy.

On one hand, I stay very bullish on the AI theme. I believe this expertise is right here to remain and I anticipate Nvidia to learn from the expansion of the trade within the years forward.

In the meantime, I believe Nvidia inventory trades at a lovely valuation as we speak. At present, the price-to-earnings (P/E) ratio right here is barely 26. This isn’t excessive provided that the corporate’s earnings are forecast to leap 53% this yr. The price-to-earnings-to-growth (PEG) ratio is simply 0.5.

Then again, I do suppose there’s a chance that near-term AI spending may very well be decrease than anticipated (which might end in lower-than-expected revenues for Nvidia). Because the arrival of low-cost AI mannequin Deepseek just a few months in the past, I’ve been rather less bullish on the AI buildout theme than I used to be beforehand.

I additionally suppose there’s an opportunity that Nvidia’s share price might go decrease earlier than it goes increased. I wouldn’t be shocked to see the inventory hit $100 once more given all of the chaos out there proper now (as a result of tariffs) and the unfavorable sentiment in direction of tech shares.

How I’m taking part in Nvidia

As for a way I’m taking part in Nvidia myself, I’m invested within the firm. At present, it’s one in every of my largest holdings.

Nevertheless, I just lately bought just a few shares close to the $140 mark. This was primarily to scale back threat in my portfolio.

I’m not in a rush to purchase the shares again at $118 given the scale of my holding. But when the inventory was to fall to $100 or under, I may very well be tempted to start out including to my place once more.

That’s the place I’d be trying to purchase. And that’s the place I believe buyers must be contemplating the inventory in the event that they don’t but personal it.