- StockStory Top Pick NVDA +0.86% MSFT +0.67%
- TSM +1.53% TSMWF 0.00% TM -1.12%
Shares of Nvidia Corp. (NASDAQ: NVDA) have risen 2.0% in the past week on announcements regarding strategic partnerships with AWS, Synopsys, and Mistral AI. Also, reports have surfaced that Meta and Amazon are among companies exploring or developing their own in-house AI chips or considering using Google's chips. Nvidia’s stock is 32.1% higher than six months ago, easily outperforming the S&P 500 and Nasdaq in that time.
24/7 Wall St. Key Points
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U.S.-China trade relations present headwinds, but Nvidia Corp. (NASDAQ: NVDA) is also the dominant AI chipmaker in the market, and the company’s profitability remains strong.
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Here is a look at where Nvidia stock could be headed for the rest of this year and into the next.
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Note that recent gains for the chipmaker had helped wipe away the steep drop the stock suffered early in 2025, after it reported it would take a $5.5 billion charge tied to H20 chip export restrictions to China. While some analysts have raised price targets, others caution about ongoing headwinds due to uncertainty surrounding future U.S.-China trade relations and the potential for stricter regulations. The third-quarter report was stellar on the top and bottom lines due to strong growth in the data center segment.
Despite its challenges, the company's pivot to U.S. AI infrastructure investments signals resilience. With analysts eyeing robust data center demand, 24/7 Wall St. here explores whether Nvidia can sustain its recovery and drive further growth.
Why Invest in Nvidia?
Nvidia faces significant hurdles as it navigates U.S.-China trade restrictions and intense market expectations. In the first quarter, export controls on its H20 AI chip—which had been designed specifically to circumvent export restrictions on advanced technology to China—led to the substantial write-down noted above. Analysts believed the ban could result in a $9 billion revenue hit. Some $700 million would affect fiscal first-quarter results, with the remaining $8 billion spread across the second and third quarters.
U.S. tariffs and China’s retaliatory measures also threatened supply chain costs, particularly for components sourced globally, while competition from Huawei’s Ascend chips grows. These factors had analysts warning of margin pressure. Yet, Nvidia's profitability remains robust. The company has reportedly raised prices 10% to 15% on some of its most popular GPUs as a result of the tariffs. Gaming processor prices jumped 5% to 10%, while it hiked high-end AI GPUs as much as 15% to account for surging manufacturing costs and to keep its earnings stable.
Story ContinuesYet investments in U.S. AI infrastructure, supported by Taiwan Semiconductor Manufacturing's $165 billion Arizona fab expansion, bolster Nvidia's supply chains and are backed by its $37.6 billion cash reserve.
CEO Huang announced during his recent trip to South Korea that Nvidia will supply more than 260,000 advanced graphics processing units (GPUs) to South Korean firms, including Samsung and Hyundai Motor. He believes AI has reached a "virtuous cycle" where improvements in the models lead to more investment, which in turn leads to further improvement and investment. He also expressed hope that trade talks between the U.S. and China might lead to a change in policy that allows Nvidia to resume sales of state-of-the-art chips in China.
The AI market is projected to grow at a 37% CAGR through 2030, according to Grand View Research. This supports Nvidia’s $170 billion fiscal 2026 revenue forecast, a 30% increase over the $130.5 billion it generated in 2025.
Nvidia as a Company
In its third-quarter earnings report, Nvidia revenue totaled a record $57.01 billion, including $51.2 billion from its data center division. The total was up 66% year over year, largely fueled by the voracious demand for its AI chips.
The chipmaker invested $3.2 billion in capital expenditures in fiscal 2025, expanding Blackwell accelerator production and AI infrastructure. The company's capex has spiked over 200% this year to more than $3 billion to meet hyperscaler demand.
U.S.-China trade restrictions still pose risks, even with the potential thaw, tariffs could raise costs, which would explain the price hikes reportedly implemented. A 36% operating expense increase to $5.8 billion for R&D offset Nvidia's adjusted operating income of $37.8 billion.
Yet, Nvidia's growth is not solely tied to data centers. The company expanded its automotive segment, with a 32% year-over-year increase to $592 million, driven by partnerships with Toyota and Aurora Innovation for autonomous vehicles. This diversifies Nvidia's portfolio amid tariff uncertainties.
Nvidia has projected fiscal third-quarter revenue of $65 billion, plus or minus 2%. This outlook exceeded analysts' consensus projection.
Nvidia as a Stock
This has been a rollercoaster year for Nvidia shareholders. The stock dropped to a 52-week low of $86.62 in April. After an announced pause in U.S.-China tariffs and the first-quarter results, the share price recovered. It hit an all-time high of $212.19 in October, which had the company's market cap briefly over $5 trillion.
While at least one officer has still been selling shares, analyst sentiment remains bullish. Of 64 analysts who cover the stock, 60 recommend buying shares, 11 of them with Strong Buy ratings. Their consensus one-year price target has risen to $250.66. That target signals about 38% upside potential from its current price. Targets range from $140 to $352 per share.
Citigroup, J.P. Morgan, Morgan Stanley, and others recently maintained their Buy-equivalent ratings. Evercore ISI has the street-high target price. It cited accelerating revenue growth, strong demand for Blackwell chips, an improving supply chain, and a significant pipeline. Yet, renowned investor Michael Burry is bearish on Nvidia.
Estimate
Price Target
Change From Current Price
Low
$140.00
−22.8%
Median
$250.66
38.1%
High
$352.00
94.0%
Nvidia's AI dominance, 93% data center growth, and automotive partnerships with Toyota positioned the company for gains in 2025. However, tariff risks and DeepSeek’s competitive AI models require caution. The AI market's growth and the chipmaker's $47 billion second-quarter revenue position Nvidia to achieve its $170 billion full-year revenue target, while its cash buffer and Stargate Project role offer stability. Still, valuation concerns linger. Nvidia is a buy for growth-oriented investors, but others should use caution.
24/7 Wall St.'s year-end price target for Nvidia is $233.16 per share, which would be a 28.5% gain. That estimate accounts for tariff risks, competition from DeepSeek, and potential Blackwell supply constraints. It also reflects Nvidia's AI dominance and second-quarter 2026 revenue guidance.
Time to Sell Nvidia Stock as Michael Burry Takes Aim?
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