1 Stock-Split AI Giant to Buy Before It Soars 93%, Says Wall Street Analyst

It’s probably going to be a long time before Nvidia (NASDAQ:NVDA) stock has a chance to split again. With shares back in bear market territory, the name may be at risk of falling back to the double-digits in short order. While such steep drops are nothing all too uncommon for the GPU juggernaut, this bear market dip does feel a bit more unnerving, thanks primarily to DeepSeek. While Nvidia is still the undisputed champ in AI GPUs, the trillion-dollar question is what happens when the next DeepSeek pops up.

Undoubtedly, we seem to be trending towards lower-cost AI models and more those that can be run entirely on the edge. While models only stand to get cheaper and more portable with time, I still think the race on the high-end is still on. For instance, OpenAI recently delayed its launch of GPT-4.5, citing a GPU shortage as the reason for this.

OpenAI’s GPU shortage suggests Nvidia’s best days may not be behind it

While it’s unclear when progress on the high-end (every firm wants that number-one spot currently held by OpenAI) will begin to slow, I do think that the rise of agentic AI, reasoning models, and other power-hungry models (perhaps AGI in the future?) will grow ever power-hungry.

Perhaps DeepSeek’s existence doesn’t pull the plug on the race on the very cutting edge. Either way, the Magnificent Seven are betting a lot to advance the effort on the high-end, including Apple (NASDAQ:AAPL), which is slated to spend $500 billion in four years in an effort that could see the iPhone maker pull ahead (perhaps to the front) in this AI race.

Either way, things are about to get interesting in the deep end of the AI waters. And despite big tech’s efforts to insource AI chips, we’re still likely a long way off from a climate that would see Nvidia GPUs experience demand that’s less than heated. For now, it’s DeepSeek, tariff tremors, fatigue in the AI trade and rising competitive threats that have some NVDA shareholders more than willing to throw in the towel.

Analysts are sticking with the name

Don’t expect analysts to downgrade the stock just because of a bit of volatility. If anything, some upgrades may be in order, given the added value in buying the name on weakness.

On the high-end, the most bullish analyst sees $220.00 as a price target on the stock. That entails a 93% gain from current levels. Until more bears step forward (they’re a rare breed when it comes to Nvidia), I’d not shy away from the name on weakness, as it could prove a wise contrarian bet.

Nvidia stock’s still a quality growth stock

Ark Invest’s Cathie Wood isn’t one of the doubters. She still views Nvidia as a high-growth play despite the recent margin forecast that startled investors. As shares of the GPU juggernaut come in again, perhaps dip-buyers, like Wood, will have more of an opportunity to pounce. After the latest slide, NVDA stock goes for 28.2 times forward price-to-earnings (P/E) — that’s close to the cheapest it’s been all year. Only time will tell if Blackwell can reignite the stock.

Indeed, there exists a scenario where DeepSeek and an efficiency boom is actually a boon for Nvidia as an increasing number of players (think startups and firms we haven’t heard about) look to buy their own picks and shovels to get in on the AI gold rush. Even if they don’t get the highest-quality picks and shovels, they can still unearth quite a bit of gold for themselves.

Either way, I find it hard not to be more enticed by shares of NVDA now that they’re trading at forward P/E multiples that are lower than some rival Mag Seven members. Who knows? Nvidia may be a relative value option as investors turn on an AI trade that may still have legs.

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