Shares of Nvidia Corp. (NASDAQ: NVDA | NVDA Price Prediction) are 2.9% higher than a week ago. China has authorized the import of the first batch of H200 AI chips, and Nvidia says it will invest $2 billion in cloud provider CoreWeave to accelerate the buildout of “AI factories.” It announced new offerings at the CES trade show, and CEO Jensen Huang spoke at the World Economic Forum. Nvidia’s stock is 8.7% higher than six months ago, underperforming the Nasdaq in that time.
Note that the chipmaker’s momentum in 2025’s second half—after the steep drop the stock suffered early in 2025 due to a $5.5 billion charge tied to the H20 chip export restrictions to China—has stalled. 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 has faced 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 a substantial write-down. 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 last year 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 last year’s 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. In fact, the U.S. president has now allowed the company to sell its advanced H200 AI chips to China. CEO Jensen reportedly will make a return trip to China soon.
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 seeming 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
For Nvidia shareholders, 2025 was a rollercoaster year. 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 some insiders have been selling shares, analyst sentiment remains bullish. Of 64 analysts who cover the stock, 60 recommend buying shares, 12 of them with Strong Buy ratings. Their consensus one-year price target is $253.19, which signals more than 34% upside potential from its current price. Targets range from $140 to $352 per share.
BofA, Stifel, Truist, 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 | −25.7% |
| Median | $253.19 | 34.3% |
| High | $352.00 | 87.7% |
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 2026 year-end price target for Nvidia is $300.14 per share, which would be a 59.2% gain. That estimate accounts for tariff risks, competition from DeepSeek, and potential Blackwell supply constraints. It also reflects Nvidia’s AI dominance and 2026 revenue guidance.
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