Nvidia (NVDA) has not been immune from the tariffs-driven selloff. The stock is down more than 30% in the year to date and is off nearly 15% in just the last five trading sessions. President Donald Trump’s announcement of “reciprocal” tariffs on U.S. trading partners on April 2 has thrust major indexes into a bear market and raised alarms that a global recession is coming later in 2025. Plus, Trump is expected to announce separate tariffs on semiconductor products, and an export restriction decision on AI chips is expected by May 15.
This has left Wall Street divided on Nvidia. Analysts still have a consensus “Strong Buy” rating on NVDA with a price target that implies nearly 90% upside potential over the next 12 months. Plus, with shares down 40% from their all-time high, the stock is trading at just 24 times forward earnings. This is a significant discount to its five-year average.
But, more pain could be ahead. Widespread tariffs on U.S. trading partners are expected to hamper consumer demand as importers pass off costs to shoppers. Companies who choose to eat the costs themselves may still face reduced demand as Americans tighten their pursestrings.
So, how are analysts recommending you play Nvidia as of April 7?
3 Analysts Weigh In on Nvidia Stock
In a new note, Bernstein analyst Stacy Rasgon says there may be a “(small) silver lining” for Nvidia. According to the analyst, some of its artificial intelligence (AI) server shipments come from Mexico. And based on his interpretation of the United States-Mexico-Canada Agreement, these shipments would be exempt from new tariffs.
However, Rasgon warns that Bernstein is not sure that Nvidia will “bottom” anytime soon. His bullish thesis on Nvidia is based on the long-term belief that artificial intelligence will continue to positively disrupt the stock market.
Adding a different angle to this argument is Jefferies analyst William Beavington. According to the sales specialist, whether or not tariffs are levied against semiconductors is not the key issue for Nvidia investors. Instead, Nvidia could be hurt by weakening consumer demand for electronics like smartphones and PCs. This will in turn reduce demand for chip orders and sales of Nvidia’s products.
Lastly, Bank of America analyst Vivek Arya is maintaining a bullish stance on Nvidia. Following the announcement of Trump’s “Liberation Day” tariffs, a team led by Arya named Nvidia among the top semiconductor picks. That’s because Nvidia is among companies that “have the best scale, profit margins and balance sheets.” Like Bernstein, Arya is taking a longer-term view on Nvidia and arguing that it will be able to survive and outperform even amidst tariff impacts.
Consensus Ratings, Price Targets on NVDA
As tracked by Barchart, there are 43 analysts in coverage of Nvidia.
37 have a “Strong Buy” rating, two have a “Moderate Buy” rating, and four have a “Hold” rating. The overall rating score of 4.77 is higher than its level of 4.74 three months ago.
Barchart tracks a price target range of $125 to $220 for Nvidia. Even the lowest price target of $125 now represents more than 30% upside potential as of this writing. Its average price target of $177.49 implies the stock can rally more than 90% over the next 12 months.
As demonstrated by Wall Street, whether you buy Nvidia right now is based on your time horizon, risk tolerance, and your view on tariffs.
