Nvidia (NVDA) stock is inching up this morning after CEO Jensen Huang dubbed President Donald Trump’s administration a “phenomenal” positive for artificial intelligence companies.
He expects AI stocks, including NVDA, to remain in favor as Trump has placed the emerging technology high up on his list of top priorities.
Despite a recent recovery, Nvidia shares are down some 20% versus their year-to-date high at the time of writing.
Why Is the Trump Administration a Boon for Nvidia Stock?
The Trump administration is focused on easing regulatory hurdles and has set aside significant funding, including the $500 billion “Stargate” initiative, to advance supercomputing and maintaining America’s lead in AI.
Additionally, it has secured commitments from Taiwan Semi (TSM) to invest up to $100 billion in the U.S. as part of its broader push to onshore chip manufacturing.
According to Huang, the AI darling will be able to make chips worth “several hundred billions” on the back of these investments aimed at building AI infrastructure in the U.S.
Domestic production will help lower NVDA’s reliance on international suppliers, mitigating risks associated with geopolitical tensions or disruptions in global trade.
Plus, it may lower transportation costs and streamline logistics as well, potentially improving profit margins for the firm based out of Santa Clara, California.
Put together, these factors could attract more capital, particularly from “Pro America” investors, to Nvidia stock in 2025.
How Do Analysts Recommend Playing NVDA Shares?
In his keynote address at the annual GTC conference, Jensen Huang projected a need for $1 trillion worth of investments in data centers over the next four years.
That made Bernstein analyst Stacy Rasgon reiterate his “Buy” rating on Nvidia stock, saying “it’s still NVDA’s game to lose – and they don’t appear to be losing.”
Rasgon sees Nvidia stock as headed for a new high of $185 as the “road map looks solid, and their capability gap vs. competitors continues to widen.”
Bernstein’s price target on the AI stock indicates potential upside of more than 50% from here.
The rest of the Wall Street is with Rasgon on Nvidia stock, given the consensus rating currently sits at “Strong Buy.”
Analysts see upside in NVDA shares to $177.43 on average that translates to a nearly 50% upside from current levels.
