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The Magnificent Seven has stumbled recently as markets react to President Donald Trump’s aggressive new tariff agenda. A sweeping 10% baseline tariff on all global imports took effect on April 9, with even steeper “reciprocal” tariffs totaling 145% in effect on China. Other trading partners could soon face their own painful import taxes following a 90-day pause.
In response, Goldman Sachs raised the odds of a recession to 45%. Mag 7 stocks lost about $1.8 trillion in value in one week alone.
Nvidia (NVDA), the poster child of the artificial intelligence (AI) boom, has seen its stock slide by double-digits over the past few months, dragged by supply chain disruptions, regulatory overhangs, and tariff tremors.
Yet amid the volatility, Bernstein remains optimistic about this semiconductor stock. The analyst believes Nvidia’s U.S. AI server shipments - largely routed through Mexico - could dodge the harshest tariff hits. While acknowledging short-term turbulence, Bernstein sees a compelling long-term case rooted in Nvidia’s AI dominance and current valuation.
Let’s dig deeper into why this dip might be a breather before the next sprint higher.
About Nvidia Stock
Nvidia (NVDA) is a pivotal force in the semiconductor industry, with a market cap of $2.7 billion. Renowned for its advanced GPUs, the company has transformed sectors ranging from gaming and data centers to self-driving cars.
Nvidia’s strategic emphasis on AI and accelerated computing continues to shape technological progress. Its innovations in deep learning and robotics position it as a foundational driver of next-generation computing solutions.
NVDA stock’s story took a sharp turn this year, sliding over 15% on a YTD basis below the $100 mark and hitting a low of $86.62 on April 7 before rebounding. From its 52-week peak of $153.13, it has shed more than 25% as investor jitters grow over potential tariff tensions under Trump’s policies.
Nvidia Exceeds Q4 Estimates
Nvidia’s fiscal 2025 Q4 earnings, reported on Feb. 26, read like a tech thriller. Revenue shot up by 78% year over year to a record $39.3 billion, blowing past forecasts, while adjusted EPS jumped 71.2% to $0.89, topping expectations. Data center growth was the engine behind this surge, where sales nearly doubled to $35.6 billion, powered by the company’s game-changing Blackwell AI chips.
Nvidia is shaping the next era across multiple industries. Strategic partnerships with cloud titans like Amazon (AMZN) and Microsoft (MSFT) cemented Nvidia’s central role in the AI revolution. Meanwhile, its reach expanded into autos, with Toyota (TM) and Hyundai (HYMTF) tapping its tech to accelerate intelligent mobility.
Looking ahead to the first quarter of fiscal 2026, management forecasts revenue at $43 billion, a potential 65% year-over-year growth. With non-GAAP gross margins projected at 71%, profitability remains razor-sharp. Plus, Nvidia’s data center segment is poised for sustained momentum, driven by relentless AI adoption across sectors fueling demand for advanced computing infrastructure.
Nvidia is generating significant confidence among analysts. Wall Street anticipates Q1 EPS to surge 50% year over year to $0.87. Meanwhile, for fiscal 2026, EPS is expected to climb 42% to $4.16, followed by another 23.8% annual surge to $5.15 in fiscal 2027.
What Do Analysts Expect for Nvidia Stock?
Bernstein’s Stacy Rasgon reiterated an “Outperform” rating on NVDA with a $185 price target, even as tariff worries dragged the stock lower.
Despite a YTD plunge, he remains bullish, citing Nvidia’s strong AI positioning, stellar revenue growth, and attractive valuation. Rasgon admits near-term uncertainty but sees long-term upside once the dust from the “Trump Tariff Tsunami” finally settles. The analyst wrote, “But we do believe the AI narrative is still real. And once things do settle down (hopefully soon!) the stock at these levels is probably worth a look.”
Overall, analysts maintain a bullish outlook on NVDA despite the recent dip, with a consensus rating of “Strong Buy.” Of the 43 analysts covering the stock, 37 recommend a “Strong Buy,” while two suggest a “Moderate Buy.” Meanwhile, four recommend a “Hold.”
The average price target of $173.95 represents potential upside of 54%, while the Street-high target of $220 suggests that the stock can climb as much as 96% from the current price level.
