Nvidia (NVDA) shares have been in a meaningful downtrend in November amid a broader macro-driven selloff in the high-growth tech stocks.

Investors aren’t entirely sure that the U.S. central bank will be able to lower rates further next month without October’s inflation data, which they believe could hurt the overvalued AI names in 2026.

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At the time of writing, Nvidia stock is down roughly 15% versus its year-to-date high set on Oct. 29.

Despite recent caution, Raymond James analyst Simon Leopold continues to see NVDA shares as a “core holding” because of the company’s leadership position in artificial intelligence.

According to him, enterprise adoption is in the early innings only with accelerated investments from AI factory builders expected to drive the semiconductor stock higher next year.

In his research note, Leopold dubbed the firm’s extensive and mature software stack “a significant competitive moat.” He now sees Nvidia rallying to $272 by the end of 2026.

Note that the Nasdaq-listed firm posted a blockbuster quarter and issued even better guidance for its fiscal Q4 last week.

Simon Leopold rates Nvidia shares at “buy” as generative artificial intelligence has “transformed a typically cyclical market sector of semiconductors into a secular boom.”

A strong community of leading developers and “full-stack system approach and platform cadence” are among other reasons he cited for the constructive view on the AI stock.

Given NVDA’s exceptional growth profile, Raymond James sees its valuation as compelling at a forward price-earnings (P/E) multiple of nearly 42x currently.

Investors should also note that historical returns favor owning NVDA stock as well.

Over the past four years, the chipmaker has had a solid start to the calendar year, with 5.91% gain in January and another 7.30% in February.

Wall Street more broadly continues to see Nvidia stock as a core long-term holding as well.

The consensus rating on NVDA shares remains at “Strong Buy” with the mean target of about $252 indicating potential upside of nearly 45% from here.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com