Nvidia Stock (NVDA) Finds Support as Wedbush Remain Bullish

Nvidia's stock (NVDA) has come under some pressure in recent days, down 14% since late October, as markets raise questions surrounding the dominance of NVDA for the first time in a long while. Recent developments, including potential shifts in Meta's hardware strategy and U.S. policy considerations regarding chip sales to China, have contributed to market volatility surrounding the stock.

The stock ended Tuesday's session 2.59% lower at $177.82, having bounced off the $170 level, a gap dating back to September. This pullback coincided with reports that Meta Platforms Inc. (META) is evaluating Google's Tensor Processing Units (TPUs) for its AI workloads, potentially reducing reliance on Nvidia's GPUs.

While Nvidia has downplayed the threat, emphasizing its platform's versatility, and praising Google for making advancements of it's own, the news underscored the growing competitive landscape.

Following the recent questions, Wedbush analyst Dan Ives has characterized Nvidia in a note as “the foundation for the AI Revolution,” emphasizing CEO Jensen Huang's strategic vision. While acknowledging competition from Google's TPUs and Broadcom (AVGO), Wedbush believes that Nvidia's dominance is unlikely to change significantly in the near future, and remain bullish on the stock.

Despite competitive pressures, Nvidia is making strides in other areas. The company's next-generation AI and high-performance computing platform, Vera Rubin, is slated for launch in the third quarter of 2026, ahead of schedule. Nvidia expresses confidence in achieving $500 billion in AI GPU sales by the end of 2026, even after losing access to the Chinese market due to U.S. export restrictions. This projection hinges on strategic initiatives and sustained demand from other regions.

The bounce off $170 could represent a level of support after a period of pause in a longer rally. Or there may just be further questions and difficult times ahead for Nvidia bulls. Whichever side of the divide you sit, it's unlikely to be quiet.