In the world of AI, few names have stood out as much as Nvidia Corporation (NASDAQ:NVDA). Despite some recent weakness in the stock, Evercore analyst Mark Lipacis sees this as a golden opportunity to buy into a tech giant poised for even greater success. Lipacis believes that current concerns surrounding Nvidia stock are overstated, making it a compelling buy before its upcoming earnings release on February 26, 2025.

The Current Struggles in Nvidia Stock

The recent turbulence in Nvidia stock has left many investors wary. Factors contributing to this decline include delays with the Blackwell architecture and the introduction of DeepSeek’s low-cost large language models (LLMs) from China-based competitors. These concerns have raised fears that the AI demand could be hurt, and that companies might prefer application-specific integrated circuits (ASICs) over Nvidia’s chips.

Despite these factors, Lipacis remains optimistic, asserting that the current drop in Nvidia stock represents a buying opportunity for savvy investors.

Analyst’s Bullish View: Nvidia Stock Could Soar to $190 in 2025

Mark Lipacis is convinced that Nvidia stock has the potential to soar to $190 by 2025, driven by the continued strength of its AI products. According to Lipacis, the lower-cost AI models being developed by competitors like DeepSeek will actually help increase AI adoption among small and medium-sized enterprises. This increased demand will ultimately benefit Nvidia, which dominates the public cloud and enterprise AI markets.

Lipacis emphasizes that Nvidia’s leadership in software, particularly with its CUDA platform, puts the company in a unique position. While ASICs may pose some competition in certain sectors, Lipacis argues that Nvidia’s established developer community and dominant software tools will ensure its long-term success in the AI space.

Nvidia’s Attractive Valuation

As Nvidia stock currently trades below its 8-year median price-to-earnings (P/E) ratio of 36x, Lipacis sees it as undervalued. He suggests that investors should act before Nvidia’s next earnings report, set for February 26, 2025. Lipacis expects Nvidia to report a strong fourth-quarter performance for fiscal 2025, with positive guidance for the future. This, he believes, will unlock significant upside potential for the stock.

Currently, Wall Street anticipates earnings growth of 135% for Nvidia in 2025, followed by another impressive 43.68% in 2026. This growth trajectory only adds to the allure of Nvidia stock for investors looking for long-term opportunities in the AI and semiconductor sectors.

Wall Street Consensus: Nvidia Stock’s Future Looks Bright

Evercore’s Lipacis is not alone in his bullish outlook on Nvidia stock. The consensus rating for NVDA is a “Strong Buy,” with a mean target price of $177.43, suggesting potential upside of 30% from current levels. While Nvidia has faced some recent headwinds, the stock has still surged by approximately 100% compared to its 52-week low, highlighting its resilience in the face of market challenges.

As the AI revolution continues to unfold, Nvidia’s position as a leader in the field ensures that its future remains bright. For those considering a tech stock to add to their portfolio, Nvidia offers a compelling mix of growth potential and market dominance in AI technologies.

Conclusion: A Smart Move Ahead of February 26

For investors looking to capitalize on Nvidia’s growth prospects, now is an opportune time to buy Nvidia stock (NASDAQ:NVDA). With strong market fundamentals, an attractive valuation, and a favorable outlook from analysts like Mark Lipacis, Nvidia looks poised for substantial gains heading into 2025. Investors should consider loading up on NVDA before its upcoming earnings report on February 26, 2025, as the stock has all the ingredients for continued success in the rapidly expanding AI sector.

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