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last week's financial report failed to boost nvidia, the ai ​​"darling" of the past two years, and was instead hit head-on by the september stock market "curse": the stock fell 11% in the first two trading days of september. however, a recent report from bank of america believes that the recent unfavorable environment has made nvidia's valuation look quite attractive, providing investors with an attractive buying opportunity.

on tuesday, the first trading day of september, nvidia's stock price closed down 9.5%, and its market value shrank by nearly $280 billion in one day, the largest decline in market value of a u.s. stock. wall street journal later mentioned that nvidia's stock price fell after the release of its financial report, highlighting investors' concerns about multiple factors such as the overvaluation of the stock, the slowdown in guidance for revenue growth, and the sustainability of the overall ai chip investment frenzy. nvidia's third-quarter revenue guidance showed that revenue would slow from five consecutive quarters of triple-digit percentage growth to nearly 80%, which was interpreted by some as a sign of cooling demand for the company's ai chips. the financial report made the market doubt the sustainability of huge investments in ai hardware.

in addition, after the market closed on tuesday, news came out that the u.s. department of justice issued an antitrust investigation subpoena to nvidia. under the impact of increased regulatory risks, nvidia failed to rebound successfully on wednesday.

in short, the earnings report that failed to meet wall street's highest expectations, the production problems of nvidia's much-anticipated blackwell chip, the recent regulatory review, as well as investors' cautious attitude towards ai transactions and overall market volatility have all become the driving force behind nvidia's sharp drop. a recent report by bank of america analysts such as vivek arya believes that these factors combined can create a "reinforced" buying opportunity for investors because nvidia's stock price has fallen to the lowest quartile of valuations in the past five years.

the report states:

"(nvidia's) key fundamental recovery catalyst could be supply chain data in the coming weeks, (which) confirms the readiness of shipments of new blackwell products."

although nvidia's stock price lacks positive catalysts in the short term, its stock price is expected to be supported in the next few years as corporate customers use nvidia chips including the hopper and blackwell series to build ai functions. bank of america wrote in the report:

“the tech industry will spend at least another year or two intensively building nvidia’s blackwell chip, which will increase ai training capabilities by 4 times and reasoning capabilities by more than 25 times. so far, this is still the first wave of large language models (llms), and using nvidia’s hopper (chip) is just the beginning.”

bank of america reiterated that nvidia is the bank's top pick in the industry and gave it a buy rating with a target price of $165. this target price means that bank of america expects nvidia's stock price to rise by about 55% from wednesday's closing price.

in addition to bank of america, some market participants believe that this is a good time to buy nvidia at a low price. piper sandler analyst harsh kumar is still optimistic about nvidia, pointing out that the market demand for nvidia's hopper chip is strong and is expected to grow further in the second half of the fiscal year. at the same time, the revenue of blackwell chips is basically on track. wedbush securities analyst daniel ives said that nvidia's chips have become the new oil and new gold in the it field. its chips have promoted the ai ​​energy revolution and are currently the only choice.

on thursday this week, nvidia's stock price fell nearly 1.4% at the beginning of the trading session, and then quickly turned to rise. when it refreshed the daily high in the morning, it rose more than 3.2% during the day, and then gave up most of the gains, closing up more than 0.9%, rebounding after two consecutive days of decline, and breaking out of the closing low since august 9, which was refreshed for two consecutive days.