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Nvidia (NVDA) is a market darling and has soared to multitrillion-dollar heights while riding the artificial intelligence (AI) wave. Yet shifting tides threaten dominance.
Nvidia enters April in turmoil, facing trade wars, regulations, and investor fears. This week, NVDA stock is under pressure as Prseident Donald Trump prepares to roll out “reciprocal tariffs” on April 2 - taxing imports from countries that impose higher tariffs on U.S. goods. The move has rattled markets, raising fears of inflation and supply chain disruptions.
Meanwhile, Washington’s crackdown on Chinese tech firms now forces U.S. chipmakers to navigate stricter approvals for semiconductor sales. Beijing fired back, blocking Nvidia’s H20 chip over energy-efficiency concerns, tightening the noose on the company’s sales in China. Adding to the unease, Nvidia’s close partner, CoreWeave (CRWV), stumbled with its IPO, fueling skepticism about AI’s relentless growth.
Analysts warn that data center investments may slow, while some question whether Nvidia’s dominance in AI compute is peaking. With the stock down about 12% in March – the worst monthly drop since 2022 – is this a buying opportunity or a warning sign?
About Nvidia Stock
Nvidia (NVDA) dominates the semiconductor landscape, revolutionizing industries with its high-performance graphics processing units (GPUs). With a market cap nearing $2.7 trillion, the Santa Clara-based giant powers gaming, data centers, and autonomous systems.
Its pivot toward AI and accelerated computing has redefined its trajectory, fueling explosive growth. From deep learning to robotics, Nvidia’s innovations shape the future of technology, making it a linchpin in the AI revolution. As demand for computing power surges, Nvidia remains at the forefront, delivering the chips that drive tomorrow’s breakthroughs.
The AI chip stock has returned over 20,600% over the past decade. However, NVDA is down 30% from its 52-week peak of $153.13.
NVDA is defying expectations with an intriguing valuation. Despite leading the AI and computing revolution, its forward price-earnings ratio of 26.4x and price-sales ratio of 13.09 are priced lower than its historical averages. These figures, especially considering Nvidia’s dominant position in high-growth sectors, suggest that the stock could still have considerable upside, making it an enticing play for investors seeking long-term growth.
Nvidia Tops Q4 Earnings Forecasts
Nvidia’s fiscal 2025 Q4 earnings, released on Feb. 26, told a story of unmatched growth. Its revenue soared 77.9% year-over-year to a record high of $39.3 billion, smashing expectations. Profit followed the same path, with adjusted EPS up 71.2% to $0.89, beating the predicted $0.85.
Fueling this surge was Nvidia’s dominance in data centers, where sales hit $35.6 billion - almost doubling from the year prior. At the center of this boom were the company’s Blackwell AI chips, driving its position as a leader in the AI revolution. Strategic collaborations with cloud giants like Amazon (AMZN) and Microsoft (MSFT) showed Nvidia's expanding reach in AI and cloud computing.
But Nvidia’s reach stretches far beyond these arenas. Its alliances with automotive giants like Toyota (TM) and Hyundai (HYMTF) signaled its growing influence across industries.
Moreover, Nvidia’s balance sheet speaks volumes. With cash up 66.3% in fiscal 2025 to over $43.2 billion, it remains in a net cash position despite heavy AI investments. This solid foundation boosts investor confidence and sets the stage for accelerated capital returns, making each quarter more promising than the last.
For the first quarter of fiscal 2026, management is eyeing $43 billion in revenue, potentially swinging by 2%. If Nvidia hits this target, it’s a 65% leap from last year. Profitability is also rock-solid, with non-GAAP gross margins set at a robust 71%, signaling that growth and efficiency are well on track.
Nvidia is generating significant confidence among analysts. Wall Street anticipates Q1 EPS to surge 50% year over year to $0.87. Meanwhile, for fiscal 2026, EPS is expected to climb 42% to $4.16, followed by another 23.8% annual surge to $5.15 in fiscal 2027.
What Do Analysts Expect for Nvidia Stock?
Overall, analysts are upbeat about NVDA’s prospects, with a consensus rating of “Strong Buy.” Of the 44 analysts covering the stock, 38 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining four recommend a “Hold.”
The average price target of $177.19 represents potential upside of 65%, while the Street-high target of $220 suggests that the stock can climb as much as 103% from the current price level.
