Artificial intelligence (AI) stocks have experienced a downturn, prompting investor skepticism over high valuations after a sustained bull market. Notably, Nvidia (NASDAQ: NVDA), a leading provider of AI chips with a 90% market share in the data center sector, has seen its stock price drop about 5% to $184 since late February. Despite the recent sell-off, analysts predict a robust performance, with expected revenue growth of 70% and earnings growth of 73% for the fiscal year.
In its latest fiscal quarter, Nvidia reported a revenue of $68 billion, primarily from data centers, which accounted for 91% of that total. The company anticipates $78 billion in revenue for the first quarter, backed by $500 billion worth of orders extending through 2026. Wall Street analysts have a median price target of $265 per share for Nvidia, implying a potential 43% return over the next year.
