Nvidia (NVDA, Financials) shares fell 8% on Monday and are down 15% year-to-date in 2025, a decline that Bernstein described as “a little stunning” given the company's recent launch of its Blackwell product cycle.

Now trading at about 25 times next-twelve-month earnings, the stock has the lowest value in a year and approaches 10-year lows. Rare in the previous decade, Nvidia's value has also gone below parity with the Philadelphia Semiconductor Index. Currently trading somewhat above the S&P 500, the stock has the lowest relative level since 2016.

Given the SOX index down 8% year-to- date, Nvidia has behind the larger semiconductor industry. Though there were first difficulties with deployment, Nvidia's Blackwell cycle seems to be accelerating. The corporation said that its Blackwell sales in January were $11 billion; supply is projected to be below demand for future quarters.

Concerns about development, supply chain interruptions, and government policies like tariffs have all had weight on Nvidia's shares. Though Bernstein sees it as premature to draw the conclusion that the AI investment trend is receding, market attitude toward AI stocks has deteriorated. Spending linked to artificial intelligence is increasing, and Nvidia's product cycle is still in its early phases.

The forthcoming GTC 2025 conference, set for March 17–21, might act as a possible trigger for the stock. With a price target of $185, Bernstein maintained an Outperform rating on Nvidia, saying that despite the recent market downturn, its present value is growingly appealing.

Nvidia shares traded at $112.94, down 1.1%, as of 10:48 a.m. GMT-5 on Tuesday.