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Nvidia (NVDA) shares have recovered more than 15% over the past five trading sessions after President Donald Trump decided in favor of a 90-day pause on his reciprocal tariffs on dozens of countries, except China.
According to Morgan Stanley analyst Joseph Moore, the longer-term picture for NVDA remains positive as “sustained AI spend and relative supply chain flexibility will help it outperform.”
But does Nvidia stock price that’s currently down nearly 30% versus its year-to-high have enough juice to surpass $1,000 By 2026? Let’s explore.
Is Nvidia Stock Out of the Woods Yet?
Trump’s 90-day delay on reciprocal tariffs is meaningful news for U.S. stocks that have been mired in losses ever since he first indicated plans of new duties on imports.
However, the president’s change of heart is not a definitive “all clear” for Nvidia stock.
The White House said it intends to launch tariffs specific to the semiconductor industry, which could materially hurt the chipmaker’s business moving forward.
Moreover, Trump has raised duties on Chinese imports to a whopping 145%, to which Beijing has already vowed “resolute and forceful” countermeasures.
All in all, escalating Sino-U.S. trade tensions may continue to weigh on NVDA shares as the AI darling currently generates nearly 17% of its overall revenue from China.
What Price Could NVDA Shares Hit by 2026?
The aforementioned headwinds could stand in the way of Nvidia stock rallying hard to over $1,000 by 2026. Even for longer term, Morgan Stanley analyst Joseph Moore refrained from issuing such a pompous forecast for NVDA in his latest research note.
He’s bullish on the AI stock but expects it to hit $162 only over the next 12 months, which indicates potential for nearly 50% upside from current levels.
Investors should also note that a $1,000 price tag on NVDA shares would place the firm’s overall market cap at close to $25 trillion versus $2.62 trillion only at the time of writing.
This also suggests that expecting Nvidia to hit $1,000 by 2026 could prove unrealistic.
Should You Invest in Nvidia in 2025?
Despite near-term challenges, Wall Street remains largely bullish on NVDA shares.
The consensus rating on Nvidia stock currently sits at “Strong Buy” with the mean target of $175.05 indicating potential upside of roughly 60% from here.
