Cathie Wood Buys the Dip in Nvidia Stock (NVDA) While Wall Street Remains Bullish
Cathie Wood purchased 93,374 shares of Nvidia as the stock dipped 3% despite strong Q3 results. Analysts remain bullish, with Raymond James and Melius analysts giving strong buy ratings and raising price targets. Nvidia's AI chip demand and improving margins are highlighted, with Wall Street consensus showing strong buy ratings and a 41.75% upside potential.
Nvidia (NVDA) stock slipped about 3% on Thursday, giving back early gains after the stock initially rallied on strong Q3 results and upbeat guidance. The company reported a 62% jump in revenue, while earnings per share landed at $1.30, topping Wall Street estimates. CEO Jensen Huang's comments about rising demand for AI chips also lifted sentiment earlier in the session. However, the drop showed growing investor caution about the sky-high valuations and the risks tied to the fast-moving AI market.
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At the same time, Cathie Wood bought the dip in Nvidia stock by purchasing 93,374 shares on Thursday. Many analysts also remain positive, pointing to strong results, solid guidance, and clear confidence from management. Even after the pullback, Nvidia shares are up 35% year-to-date and 23% over the past year, showing the stock still holds strong momentum in the broader AI rally.
Top Analysts Are Upbeat About Nvidia Stock
Following the Q3 print, Raymond James analyst Simon Leopold restarted coverage on Nvidia with a Strong Buy rating and a $272 price target. He said Nvidia remains the leader in AI chips and is seeing strong demand from large AI data centers. He also noted that Nvidia updates its chips and systems on a steady schedule, which helps support ongoing growth.
The 5-star analyst believes the market may still be underestimating Nvidia's sales potential. He expects solid demand for the new Blackwell chips and sees room for higher forecasts ahead. While he acknowledged normal pullbacks can happen, he said AI spending is still strong and NVDA's stock looks attractive at current levels.
Meanwhile, Melius analyst Ben Reitzes lifted his price target to $320 from $300 and kept a Buy rating on Nvidia stock. He believes Nvidia's growth is not slowing. The company now has more than $500 billion in Blackwell and Rubin orders through 2026, giving strong visibility for future data center revenue. Reitzes also highlighted Nvidia's improving margins, with gross margin now moving toward 75%, which he sees as a sign of strong pricing power and scale.
Is Nvidia Stock a Strong Buy Post Q3 Earnings?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, one Hold, and one Sell assigned in the past three months. Further, the average NVDA price target of $256.05 per share implies 41.75% upside potential.
