What happened

After four straight trading days of unmitigated selling, shares of graphics and crypto-mining semiconductor manufacturer Nvidia (NASDAQ:NVDA) reversed course today -- and bounced nearly 5%!

Of course, those morning gains proved fleeting, but as of 2:15 p.m. EDT, Nvidia stock is still holding onto a respectable 3.3% gain. (And you have to wonder if it might be up even more if the stock market hadn't suddenly gone to heck in a handbasket today.)

Stop motion photo of a bouncing tennis ball

Image source: Getty Images.

So what

Investors can send their thank-you notes directly to Morningstar, which was quoted today commenting that "after taking a fresh look at our thesis on Nvidia, we are raising our moat rating to wide from narrow, thanks to intangible assets related to the design of graphics processing units (GPUs)."  

Now what

Coming on the heels of similarly positive notes in recent weeks from investment banks including KeyBanc, BMO Capital Markets, and Mizuho, which have posited price targets of anywhere from $900 to $1,000 for Nvidia stock (which only costs about $750 today), it seems there's a consensus forming on Wall Street that the time for selling is over, and the time for buying is here -- and maybe they're right.

Nvidia's price strength today in the face of a broad stock market collapse certainly suggests that investors are tired of selling Nvidia stock. But all that being said, when I look at Nvidia's valuation today -- 85 times trailing earnings, and even 82 times free cash flow -- I cannot help but think that the stock remains richly priced.

And Wall Street's optimists notwithstanding, I fear Nvidia stock may still have farther to fall.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.