Nvidia (NVDA) slid lower on Monday after several analysts updated their coverage of the semiconductor company’s shares. That includes 4.5-star HSBC analyst Frank Lee cutting his price target for NVDA stock from $200 to $185 per share. This still represents a potential 36.12% upside but did shake investor confidence in Nvidia.
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Investors will note that Lee reiterated his Buy rating for Nvidia stock alongside that price target cut. This shows he remains bullish on the stock, just not as much as before. That makes sense as the company faces several potential headwinds in 2025.
What 2025 Holds for NVDA Stock
First up is the latest economic warnings that may affect Nvidia shares. Experts predict that a strong U.S. economy and stable inflation could result in interest rate cuts being avoided this year. That would weigh on NVDA stock as markets were hopeful the Federal Reserve would drop rates in 2025.
Adding to this is outgoing President Joe Biden’s plan to restrict the trade of artificial intelligence (AI) chips to other countries. Allies of the U.S. would continue to have access to these chips, but rivals, including China and Russia, wouldn’t. This could negatively affect Nvidia’s business as it’s leading the recent AI boom with its chips.
Finally, Nvidia has been suffering AI growing pains recently. That includes issues with its new Blackwell chips delaying customer orders. Some of its biggest buyers, such as Microsoft (MSFT) Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META), are having technical issues with its latest AI chips.
Is NVDA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus for Nvidia is Strong Buy based on 36 Buy and three Hold ratings over the last three months. With that comes an average price target of $177.76, a high of $220, and a low of $140. This represents a potential 30.79% upside for NVDA shares.
