22V Research believes the current macroeconomic backdrop is particularly favorable for growth-at-a-reasonable price stocks such as Nvidia . Stocks characterized within the growth-at-a-reasonable price strategy, or GARP, combine features of both growth and value stocks while avoiding the extremes of either practice. Specifically, GARP companies tend to have strong earnings growth but still have relatively reasonable valuations. In a Sunday note, 22V Research made the case that now is as good as time as any for investors to consider buying GARP stocks, which the firm says have already started to rebound. “The S & P GARP basket has gained 6.1% since August and 2.9% [week over week]. Blending Growth and Value looks increasingly attractive given performance trends, the macro backdrop, and the extreme valuation spread between Value and Growth,” wrote Dennis DeBusschere, 22V’s president and chief market strategist. Nvidia shares have already climbed 38% so far this year on the back of ongoing artificial intelligence enthusiasm. Last week, shares hit an all-time high, putting the stock’s market cap above $4.5 trillion. But despite this runup, 22V still believes the AI chipmaker qualifies as a GARP stock given reasonable valuation in relation to its growth potential. In a Monday note, Goldman Sachs hiked Nvidia’s price target to $210 per share from $200, implying a gain of 12% from Friday’s close. The bank currently has a buy rating on the name. As a catalyst, analyst James Schneider pointed to Nvidia’s investments and partnerships with companies such as OpenAI. “We expect near-term strength in Nvidia’s fundamentals driven by upside from both hyperscalers and non-traditional customers — and continue to see the hyperscaler revenue contribution dominating the company’s revenue mix,” he wrote. Semiconductor manufacturer Micron was another name on the list. Shares have surged 128% this year. On Monday, Morgan Stanley analyst Joseph Moore upgraded his rating on the stock to overweight from equal weight. He also lifted his price target to $220 from $160, corresponding to an upside of 17%. “Micron is pushing the envelope on valuation as the group rallies, but we believe we are looking at multiple quarters of double digit price increases which can lead to substantially higher earnings power — and resolve any lingering questions on specialty high bandwidth memory for AI,” the analyst wrote. Other GARP names in 22V’s basket include Carnival , Southwest Airlines and General Dynamics . ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
Nvidia trading at reasonable price despite hitting all-time high last week
