Nvidia Stock Is 12% Off Its Record Highs Heading into 2025. Is This a Dip Worth Buying?

Core Viewpoint - Nvidia shares are currently down about 12% from their record levels in late October, but analysts at Raymond James are optimistic about the stock's recovery and potential to reach new highs by 2026 [1]. Group 1: Analyst Recommendations - Raymond James maintains a "Strong Buy" rating on Nvidia with a price target of $272, indicating a potential upside of 45% from current levels [4]. - Other Wall Street firms also recommend holding Nvidia shares, with a consensus rating of "Strong Buy" and a mean target of approximately $256, suggesting a potential upside of 35% [8]. Group 2: Revenue and Market Dynamics - Nvidia is expected to receive a significant revenue boost of at least $7 billion from resuming chip shipments to China, which is a key factor in Raymond James' bullish outlook [3]. - The company's Blackwell shipments are projected to peak at around 7.8 million chips in calendar 2026, further supporting positive sentiment around Nvidia's growth [5]. Group 3: Financial Performance - For the current financial quarter, Nvidia is anticipated to earn $1.44 per share, reflecting a substantial year-on-year increase of 69%, which suggests that concerns regarding an AI bubble may be overstated [6]. - Historically, Nvidia shares have shown strong performance at the beginning of the year, averaging just under a 6.0% gain in January over the past four years, making them attractive heading into 2026 [6].