By Danny Vena, CPA
Publication Date: 2026-04-09 19:18:00
One of the biggest debates raging on Wall Street in recent months is what to make of Nvidia (NVDA +0.99%). The company was arguably the catalyst for the artificial intelligence (AI) revolution, supplying the graphics processing units (GPUs) that enable the technology. After a run of 1,180% that spanned three years, the stock has fallen 36% from its peak and is back where it was one year ago.
Many investors believe the sell-off is unwarranted and that it’s only a matter of time before Nvidia’s stock price rebounds, particularly in light of the company’s recent forecast. But one classic financial model suggests Nvidia’s stock price should be above $900.
Image source: Getty Images.
A different approach
Most Wall Street analysts employ a combination of spreadsheets laden with historical data, sales and profit expectations, and various financial ratios to determine where share prices are going. They tweak their financial models with the latest data in an effort to predict what the stock price “should” be. The formulas vary from analyst to analyst and investment bank to investment bank, which explains the infinite variety of recommendations and price targets.
Analysts at UBS take a different approach. The company’s HOLT platform is widely regarded as one of the industry’s most respected quantitative investing models. “HOLT’s proprietary methodology corrects subjectivity in corporate financial statements by converting income statement and balance sheet information into a cash…
