Shares of Nvidia Corp. (NASDAQ: NVDA) are up 10.4% over the past 90 days, and it recently reached a $5 trillion valuation. CEO Jensen Huang announced the company has secured more than $500 billion in orders for its next-generation Blackwell and Rubin AI chips, and the chipmaker announced collaborations with Deutsche Telekom and Samsung. Yet, China reportedly banned the use of foreign AI chips in state-funded data centers. The stock is 73.5% higher than six months ago, easily outperforming the S&P 500 and Nasdaq in that time.
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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.
- Capex continues to be a strong focus as Nvidia continues to hyperscale its production.
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Note that recent gains for the chipmaker 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 second-quarter report was stellar on the top and bottom lines, but its guidance fell short of high expectations. The third-quarter report is scheduled for November 19.
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.
New 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.
Yet 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, 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 allowed Nvidia to resume sales 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 second-quarter earnings report, Nvidia revenue totaled a record $46.7 billion, including $41.1 billion from its data center division. The total was up 56% 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 39% operating expense increase to $3.7 billion for R&D offset Nvidia’s adjusted operating income of $25.1 billion.
Yet, Nvidia’s growth is not solely tied to data centers. The company expanded its automotive segment, with a 103% year-over-year increase to $570 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 $54 billion, plus or minus 2%. This outlook does not assume any shipments of its H20 chips to China.
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 recently hit an all-time high of $212.19, which had the company’s market cap briefly over $5 trillion.
While at least one officer is still selling shares, analyst sentiment remains bullish. Of 64 analysts who cover the stock, 59 recommend buying shares, 10 of them with Strong Buy ratings. Their consensus one-year price target has risen to $229.67. That target signals over 15% upside potential from its current price. Targets range from $100 to $350 per share.
Loop Capital reiterated its Buy rating and has the street-high target price. It cited the prospects for a significant increase in GPU shipments over the next 12 to 15 months. Goldman Sachs also just maintained a Buy rating.
| Estimate | Price Target | Change From Current Price |
| Low | $100.00 | −49.7% |
| Median | $229.67 | 15.6% |
| High | $350.00 | 76.2% |
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 $194.30 per share, implying 2.2% downside from the current price per share. 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. Because the target estimate is below the analysts’ mean, it reflects a cautious but realistic outlook.
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