Nvidia Maintains Bullish Outlook Despite Market Weakness as AI Capex Poised for $571B Surge
Nvidia shares extended their decline with a 1.1% premarket drop to $175.05, compounding a 14% monthly slump amid broad market weakness. S&P 500 futures mirrored the retreat, falling 0.6% as chip stocks including AMD and Broadcom saw parallel declines.
Bernstein's reaffirmed $275 price target cuts through the noise, citing Nvidia's detailed memo addressing investor concerns about receivables and working capital. The defense comes as Citi raises its target to $220, anticipating Q3 sales of $57B—a figure that WOULD trounce consensus estimates.
The real story lies beneath the ticker tape: Global AI investment is projected to rocket from $423B in 2025 to $571B in 2026, creating a rising tide for semiconductor demand. This structural growth narrative overshadows short-term volatility, with Nvidia positioned as the prime conduit for capital flows into accelerated computing.
