According to Koyfin data, the analysts’ consensus price target for the stock is $212.47, implying a 20% upside from its close on Wednesday.
Nvidia’s stock has been in a broad consolidation phase since August, following a strong uptrend that began after the post-tariff sell-off in early April. Sentiment toward the stock turned lackluster amid the Chinese government’s pushback against the use of Nvidia chips, and most recently, concerns about the company’s investments in other companies, especially its partners.
Retail traders, however, have turned upbeat over the past three months. On Stocktwits, retail sentiment toward Nvidia’s stock remained ‘bullish’ (56/100) as of late Wednesday, and the message volume, however, held ‘low.’
Nvidia has been a significant beneficiary of the artificial intelligence (AI) revolution that has gained momentum. The company has the first-mover advantage in the market for high-performance AI chips, while also evolving into a one-stop shop for all AI needs of companies and governments.
China, a vital cog in Nvidia’s operations, became a headwind for the company as the Jensen Huang-led company was caught in the crosshairs of the geopolitical tensions between the U.S. and China. The U.S.’s China chip curbs deprived the company of a sizeable chunk of revenues and profits.
As Nvidia worked to sidestep the ban with new stripped-down chips developed exclusively for the Chinese market, Xi Jinping’s government deemed it fit to send advisories to government establishments and companies against using Nvidia chips. Nvidia also faces competition from domestic Chinese companies, such as Huawei, which have stepped up efforts to capitalize on the opportunities arising from the U.S. chipmaker’s struggles in China.
Some analysts are also concerned about Nvidia bailing out partner companies, such as CoreWeave. The company’s recent announcement about investing $100 billion in AI startup OpenAI has also not been well received by everyone. Alongside the investment, the two companies also announced plans to build 10 gigawatts of AI compute capacity, with millions of Nvidia GPUs powering OpenAI’s next-generation AI infrastructure.
While DA Davidson analysts expressed concerns about Nvidia evolving as an “investor of last resort,” Morgan Stanley analyst Joseph Moore said in a note released Wednesday that “We view all of this as framing the bull case, rather than a certainty, given the sheer numbers involved.”
Nvidia’s stock has traded in a 52-week range of $86.62 and $184.55, and for the year-to-date period, it has gained about 32%. According to Koyfin data, the analysts’ consensus price target for the stock is $212.47, implying a 20% upside from its close on Wednesday.
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