Nvidia (NVDA) stock closed at $212.6 on May 27, down 9.81% from its highest closing price of $235.74 on May 14.
The dip comes as a result of a common pattern of volatility for the stock near its earnings report. Nvidia reported its first quarter (Q1) fiscal year 2027 earnings on May 20.
Nvidia did two things to try to prevent the dip.
The company confirmed an additional $80.0 billion in share repurchase authorization and increased its quarterly cash dividend from $0.01 per share to $0.25 per share, yet both measures failed.
Bank of America identified the likely cause of the dip. Following the earnings report release, the bank noted that the $91 billion Q2 outlook is in line with bullish expectations, likely leading to the usual post-earnings call volatility.
Despite the current sentiment, the vast majority of analysts remain bullish on Nvidia, and one of them just hiked up his price target.
Tigress Financial raises Nvidia stock price target
Tigress Financial analyst Ivan Feinseth updated his opinion on Nvidia stock following the release of the earnings report, according to Moomoo.
He is a 5-star-rated analyst with a 58% success rate and an average return of 10.6%, according to TipRanks.
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Tigress Financial has Nvidia stock on its Research Focus List and in its Focus Opportunity Portfolio, Investing.com reported. The analyst said that record first-quarter fiscal 2027 results showed AI factory demand and rising capital returns, and that Nvidia is the main beneficiary of the AI build-out.
Feinseth noted that growing hyperscalers’ capital expenditures are driving revenue, cash flow, and shareholder value growth for Nvidia.
He believes Nvidia will seize a major part of global AI infrastructure spending in a multi-trillion-dollar market.
Feinseth reiterated a strong buy rating for Nvidia stock and raised the price target to $425 from $360. His price target implies an upside of nearly 100% from the last closing price.
Of 54 analyst ratings, 51 rate Nvidia a buy, and only three rate it as hold, with an average price target of $305.38, according to MarketBeat.
We can see that Feinseth is among the very bullish analysts on Nvidia. We should also take a look at what analysts with price targets a little closer to the average think.
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Bank of America believes NVDA is trading below its historical PE multiples
In a May 25 research note shared with me, Bank of America analyst Vivek Arya and his team updated their opinion on Nvidia stock. Arya is also a 5-star analyst, with a 64% success rate and an average return of 27.6%.
This note follows the most recent one, in which the team raised its pro forma EPS estimates for fiscal years 2027 and 2028 by 9% and 15% to $9.09 and $13.27, respectively.
Analysts said they believe Nvidia is trading below its historical price-to-earnings (PE) multiples and its price-to-earnings-to-growth (PEG) ratio.
According to the team, Nvidia’s 5-year historical PE multiple is 33.6x, and its PEG ratio estimate for calendar year 2027 is 0.28x.
Stocks with a PEG below 1.0 are considered undervalued compared to their growth potential.
The team expects Nvidia to use its CEO Keynote at Computex on June 1 to provide further details on the company’s roles in agentic AI and its CPU potential.
The CPU potential refers to the launch of Nvidia’s first custom CPU, “Vera.”
Nvidia EVP and CFO Colette Kress touted the launch of the Vera CPUs during the earnings call.
“Vera CPU opens a brand-new $200 billion [total addressable market (TAM)] for Nvidia, a market we have never addressed before. Every major hyperscale and system maker is partnering with us to get it deployed. We have visibility to nearly $20 billion in total CPU revenue this year, setting us up to become the [world ’s] leading CPU supplier.”
This $200 billion TAM is what analysts are eager to learn more about.
Arya reiterated a buy rating for Nvidia stock and a price target of $350, based on a 26 multiple of his estimate of the price-to-earnings ratio excluding cash for calendar year 2027, which is within Nvidia’s historical forward-year P/E range of 25 to 56.
Analysts noted downside risks for Nvidia:
- Weakness in the consumer-driven gaming market
- Competition with major public firms
- Larger-than-expected impact from restrictions on compute shipments to China
- Lumpy and unpredictable sales in new enterprise, data center, and auto markets
- Potential for decelerating capital returns
- Enhanced government scrutiny of Nvidia’s dominant market position in AI
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