Nvidia (NVDA) stock faced a market cap loss of close to $600 billion on a single day last month due to fears triggered by China’s DeepSeek about the demand for the company’s advanced AI (artificial intelligence) chips. While NVDA stock has pared its losses, fears that DeepSeek’s low-cost AI model could disrupt the tech industry continue to weigh on investor sentiment. There are also concerns about the impact of the U.S.-China trade war, potential delays in the Blackwell ramp, and growing competition for Nvidia’s advanced GPUs from the custom ASICs (application-specific integrated circuits) made by companies like Broadcom (AVGO). Despite these challenges, several analysts remain bullish on Nvidia stock and continue to see solid growth potential due to robust AI tailwinds.
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Analysts Continue to be Optimistic About NVDA Stock
On Thursday, Mizuho analyst Vijay Rakesh reiterated a Buy rating on NVDA stock with a price target of $175. Rakesh reduced his April quarter revenue estimates for Nvidia’s data center segment, citing delays in the Blackwell ramp. That said, the analyst remains bullish on the post-April quarter acceleration in Blackwell, with GB300 GPUs coming to the rescue.
The analyst said that checks by his firm indicate that while the January quarter data center revenue is expected to be in line with estimates, the April quarter could be “more flattish” due to modest near-term ramps in Blackwell owing to GB200 power/ cooling requirements and “more HGX/MGX mix.” In particular, Rakesh expects April quarter data center revenue of about $36.7 billion, which is about $1 billion below the consensus.
Nonetheless, Rakesh expects Nvidia to deliver strong performance in the second half of 2025, with key customers Microsoft’s (MSFT) Azure, Amazon’s (AMZN) Amazon Web Service (AWS), and Alphabet’s (GOOGL) Google Cloud ramping their 2025 capex and potential additional tailwinds from Oracle’s (ORCL) Oracle Cloud Infrastructure (OCI) in 2025 and OpenAI/Apple (AAPL) in 2026. Despite near-term challenges, Rakesh is optimistic about NVDA maintaining solid industry leadership with its CUDA ecosystem and its integrated hardware platform that boasts robust customer relationships.
Earlier this week, Argus analyst Jim Kelleher reaffirmed a Buy rating on Nvidia stock with a $175 price target. Kelleher contended that while NVDA stock has been “wobbly” since the DeepSeek news, the company has a huge competitive advantage as it is addressing the needs of all the leading AI and cloud service providers. Kelleher highlighted NVDA’s multi-generation lead in GPU compute technology, with its other software and hardware products offering a comprehensive solution unmatched by any rival. He added that beyond the strength in data center, Nvidia also has massive growth opportunities in gaming, professional visualization, and automotive.
Is Nvidia a Buy, Hold, or Sell?
Nvidia is scheduled to announce its results for the fourth quarter of Fiscal 2025 (January quarter) on February 26. Analysts expect the company’s Q4 FY25 EPS (earnings per share) to surge by more than 63% to $0.85 and revenue to grow by 72% to $38.0 billion.
Ahead of the results, Wall Street has a Strong Buy consensus rating on Nvidia stock based on 37 Buys and three Holds. The average NVDA stock price target of $178.86 implies 36.4% upside potential. Shares have rallied more than 80% over the past year.
