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Nvidia (NVDA) is recognized as one of the most solid semiconductor companies currently in the market. However, despite this reputation, the stock's performance this year has not aligned with the positive expectations for the chip giant. The stock has seen a 12% decline year-to-date, a significant contrast to the 171% growth it achieved in 2024.

Bank of America's semiconductor analyst Vivek Arya, a long-time Nvidia coverage expert, highlighted on Yahoo Finance's Opening Bid podcast that there has been a shift in investor sentiment away from high-flying stock names, including Nvidia, towards international markets in search of better value. Arya mentioned that recent policy changes in the U.S. have affected the global semiconductor sector, impacting the stock positioning in such companies like Nvidia. Nevertheless, Arya believes in the strong fundamentals and profitability of Nvidia, maintaining a Buy rating with a $200 price target.

The company has made efforts to reinforce its stock value through successful annual events like the GTC, where they introduced groundbreaking AI chips such as Blackwell Ultra and Vera Rubin. Nvidia's co-founder and CEO, Jensen Huang, shared ambitious AI revenue projections, with a forecast that the company's data center infrastructure revenue could reach $1 trillion by 2028. Additionally, Nvidia unveiled plans for a future AI chip named Feynman, scheduled for release in 2028, demonstrating a robust product roadmap through 2028 that showcases the company's significant innovation in AI chip technology.