By Adam Clark
Nvidia stock was edging up early Tuesday. The chip maker's recent rally has stalled around the $200 level but there are still grounds to back the company ahead of its earnings.
The shares were up 0.2% at $198.84 in premarket trading Tuesday. The stock finished broadly flat on Monday and is down 6.9% over the past five trading sessions.
The stock broke out from its monthslong trading range of $165-$195 amid wider enthusiasm about the semiconductor sector last week but subsequently fell back. Investors hoping for more sustained gains might have to wait until the company reports earnings on May 20.
"Nvidia has delivered breathtaking revenue growth over the past 12 quarters, and there is no evidence that this momentum will slow, since demand for AI is rising, not declining. Nvidia's stock is fairly valued, and arguably undervalued right now," said Julian Koski, chief investment officer at New Age Alpha.
Wall Street generally backs the view Nvidia is undervalued, with an average price target of $269.82 according to a FactSet poll of analysts.
Nvidia stock trades at a forward price-to-earnings ratio of around 22 times, compared with more than 40 times for its peer Advanced Micro Devices, which reports its earnings on Tuesday after the market close.
Write to Adam Clark at adam.clark@barrons.com
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May 05, 2026 06:14 ET (10:14 GMT)
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