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Growth stocks are in focus as President Donald Trump’s tariffs on Mexico and Canada went live on Tuesday, March 4. His administration also raised tariffs on China from 10% to 20%.
While higher tariffs across the board could prove to be a meaningful headwind for growth names, one of them continues to be worth owning for the long term, and that’s Nvidia (NVDA).
Taking a similar view in a research note today, Wedbush analyst Dan Ives reiterated his “Outperform” rating on NVDA.
Ives has a $175 price target that indicates potential upside of nearly 60% in Nvidia stock.
Why Is Wedbush Bullish on Nvidia Stock?
Wedbush analyst Dan Ives agrees that expanded restrictions on the export of sophisticated chips to China under the Trump administration could pose a threat to Nvidia in 2025.
Still, he remains bullish on the Nasdaq-listed firm as it continues to be a top name for exposure to the artificial intelligence (AI) trade.
In his report, the analyst dubbed artificial intelligence the “biggest tech transformation trade since the industrial revolution,” adding companies will spend up to $2 trillion on AI over the next three years.
Despite recent weakness, NVDA shares are currently up close to 50% versus their 52-week low.
Nvidia Continues to Beat Expectations
Investors should note that Nvidia has so far performed well in the wake of trade restrictions and the DeepSeek development that many believe could trigger an AI slowdown in 2025.
In its latest reported quarter, the artificial intelligence behemoth topped revenue estimates by more than $1 billion.
More importantly, the company issued better-than-expected guidance for its fiscal Q1, indicating its confidence in continued momentum in AI chips sales.
NVDA stock is worth owning on the weakness as its management expects revenue to come in at $43 billion in the current quarter – well ahead of $41.78 billion that analysts had called for.
Other Analysts Agree with Wedbush on Nvidia Shares
Much like Wedbush Securities, other Wall Street analysts remain unfazed amidst rising concerns of trade restrictions.
The consensus rating on Nvidia shares currently sits at “Strong Buy” with the mean target of $177.93 indicating potential upside of about 60% from current levels.
