Bernstein analysts remain optimistic about Nvidia (NASDAQ: NVDA), asserting that fears of the AI trade coming to an end are premature. Despite a notable 15 percent decline year-to-date, they argue that Nvidia’s fundamentals remain strong, particularly as the company enters a new product cycle.

Recently, Nvidia’s stock saw an abrupt correction of over 8 percent as it trades near a critical valuation level. Analysts emphasize that the current drop presents a unique opportunity for investors, as the de-rating period coincides with a potential boost in product revenues.

Concerns regarding regulatory risks remain, yet Bernstein’s analysis indicates that Nvidia’s strong customer demand will likely sustain revenue growth moving forward.

As this dynamic plays out, smart investors are encouraged to look at Nvidia’s potential for long-term gains amidst temporary setbacks.