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President Donald Trump’s administration has escalated the tariff-driven trade war with China and other trading partners, wanting companies to shift manufacturing back to the U.S. In recent months, several chip makers have disclosed plans to expand manufacturing capabilities in the U.S. to offset potential impacts of import tariffs.
Earlier this week, Nvidia (NVDA) announced plans to begin manufacturing artificial intelligence (AI) supercomputers in the United States. This move coincides with the federal government’s investigation into imported semiconductors and chipmaking equipment.
CEO Jensen Huang emphasized that the “engines of the world’s AI infrastructure are being built in the United States for the first time.” Through various partnerships, Nvidia has committed to producing up to half a trillion dollars of AI infrastructure domestically over the next four years.
Valued at a market cap of $2.7 trillion, Nvidia is among the largest companies globally. Let’s see if you should buy, sell, or hold NVDA stock in April 2025.
Should You Own Nvidia Stock Right Now?
Huang revealed that Nvidia is expanding its focus beyond cloud AI infrastructure to target enterprise IT modernization and robotics systems, positioning it to capture a larger share of global capital expenditure.
“The amount of compute that you need has just exploded,” Huang said during an investor briefing, dismissing concerns about potential slowdowns in data center spending. He revealed that Nvidia’s top four cloud service providers have already ordered 3.6 million Blackwell GPUs early this year, with demand exceeding supply.
Huang emphasized the transformative impact of reasoning AI models, which he claims require approximately 100x more computational power than previous-generation models. This increased demand positions Nvidia’s Blackwell architecture, which offers 40x performance improvement over the Hopper architecture, as arriving at the perfect time to meet these requirements.
The CEO outlined Nvidia’s strategy to reinvent enterprise IT infrastructure, announcing partnerships with Cisco (CSCO) for networking and Dell (DELL) and HPE (HPE) for computing systems.
Huang dismissed concerns by addressing competition from custom AI chips, focusing on Nvidia’s technical advantages and complete ecosystem. On tariffs and manufacturing, Huang revealed that Nvidia has started producing chips at Taiwan Semi’s (TSM) Arizona facility and is prepared to shift more production onshore as needed.
While acknowledging temporary margin pressure during the Blackwell transition, Huang assured investors that gross margins would improve as the architecture matures and manufacturing costs decline with higher volumes.
Is NVDA Stock a Buy, Sell, or Hold?
Nvidia’s forward price-earnings multiple stands at 26.7x, which is lower than its 10-year average of 36x. However, the semiconductor giant is also grappling with slowing revenue and earnings growth.
For instance, Nvidia is forecast to grow its revenue by 18.9% annually in the next five years, lower than its 64.2% growth in the last five years. Its adjusted earnings are projected to expand by 19% between fiscal year 2025 (ended in January) and fiscal year 2030, a much slower rate than its last five-year growth rate of 83.2%.
Out of the 43 analysts covering NVDA stock, 37 recommend “Strong Buy,” two recommend “Moderate Buy,” and four recommend “Hold.” The average target price for NVDA stock is $173.95, indicating an upside potential of over 55% from current levels.
