NVIDIA now trades at approximately 18 times forward earnings. This valuation marks the company's cheapest level since before the artificial intelligence boom.
The stock has fallen roughly 16% from its May 14 peak. This decline erased approximately $1 trillion in market value. Investors appear to be rotating capital into other semiconductor companies.
Bank of America reiterated a Buy rating on the stock. Analysts set a price target of $350. This target represents a 78% upside from current levels.
The firm argues the market underestimates NVIDIA's structural advantages and pricing power. Bank of America views the recent sell-off as a strategic buying opportunity.