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Nvidia (NVDA) is the unquestioned artificial intelligence (AI) chip leader, and the company just made its latest industry-defining announcement. On April 14, CEO Jensen Huang unveiled a plan to accelerate American production with giant new AI supercomputer centers in Texas. This isn’t just symbolic. It’s a statement of Nvidia’s desire to construct the “engines of worldwide AI infrastructure” in the United States, and it’s a bid to produce up to $500 billion of that infrastructure in the U.S.
These declarations arrive during the escalation of trade tensions, as the United States indicated impending sector-specific tariffs on semiconductor imports.
By moving its supply chain to the United States, Nvidia becomes more resilient and poised to ride out geopolitical tailwinds. This strategy underpins Nvidia’s larger thesis: AI is the next industrial revolution, and the company is creating the digital spine.
About Nvidia Stock
The company designs GPUs and AI computing systems, powering a wide variety of uses, ranging from gaming and professional visualization to data centers and self-driving cars. Based in Santa Clara, California, Nvidia boasts a market capitalization of $2.7 trillion.
Over the past 12 months, Nvidia stock has surged over 29%, vastly outperforming the S&P 500 Index’s ($SPX) 7% gain. The AI boom and Nvidia’s dominant position in high-performance chips continue to attract institutional capital. Its share price momentum is closely tied to the expanding deployment of generative AI across sectors.
Nvidia has a forward price-earnings ratio of 26.7x and a price-sales ratio of 20.7x, both of which are below historical levels and imply reasonable growth expectations. Nvidia is priced on the assumption of ongoing dominance, and its expanding role in sovereign AI infrastructure might merit the valuation.
Nvidia Beats on Earnings and Eyes Massive Growth
Nvidia has consistently outpaced analyst expectations over the past four quarters. In the first quarter of its fiscal 2025 (quarter ending January 2025), the company reported EPS of $0.85, beating the consensus estimate of $0.79 by $0.06. This marked the fourth straight beat, with prior quarters also exceeding forecasts by 13.73%, 8.33%, and 11.43%, respectively.
Looking ahead, Wall Street projects continued momentum. The average EPS estimate for the current quarter is $0.87, up from $0.58 a year ago, reflecting 50% year-over-year growth. For Q3 FY25 (July 2025), analysts expect EPS of $0.97, which is another 49.2% YOY surge. Full-year earnings for FY26 and FY27 are forecast at $4.16 and $5.15, respectively, indicating sustained double-digit growth.
Nvidia’s next earnings report is scheduled for May 28, 2025, and expectations remain high. With AI infrastructure spending climbing and production ramping in the U.S., Nvidia’s earnings growth outlook remains robust, fueling confidence that the company’s expansion strategy is translating into tangible results.
What Do Analysts Expect for Nvidia Stock?
43 analysts cover Nvidia, and they have a “Strong Buy” consensus rating. They consist of 37 “Strong Buy” ratings, two “Moderate Buy” ratings, and four “Hold” ratings, indicating wide agreement on the Street.
Its average target of $173.95 indicates possible growth of 55% above current levels of approximately $111. Its highest target price is $220, indicating a potential increase of nearly 100%, highlighting bullishness associated with infrastructure demand and its ongoing market superiority in AI hardware.
