NVIDIA Corporation (NASDAQ: NVDA) is recognized as one of the AI Stocks Investors Are Watching, with Bernstein analyst Stacy Rasgon giving an “Outperform” rating and $275 price target on December 19. Trading at 25-times forward earnings, Nvidia’s valuation is in the eleventh percentile over the past 10 years.

While Nvidia’s performance has faced challenges recently, the stock remains attractive due to its underperformance relative to the SOX index despite earnings estimates rising. The company’s P/FE has fallen by 27% this year, making it trade at 25x forward EPS, representing the 11th percentile valuation over the last 10 years.

Despite losing momentum, Nvidia is anticipated to rebound in the coming year based on capex intentions, a recovering GPU narrative, and potential China upside from H200 approvals. The company’s valuation appears attractive, aligning well with its $500B+ Blackwell/Rubin guidance, making it a compelling buy.

Specializing in AI-driven solutions, NVIDIA Corporation provides platforms for data centers, self-driving cars, robotics, and cloud services. While NVDA offers investment potential, some AI stocks may present greater upside and less downside risk, especially for those seeking undervalued AI stocks that benefit from current economic trends.

For more information on trending AI stocks, check out “10 Trending AI Stocks on Wall Street” and “10 AI Stocks on Market Radar.” No disclosures were made in the article.

Read more at Yahoo Finance: Bernstein Sees Strong AI Tailwinds Supporting Nvidia (NVDA) Into 2026