For a better part of the last three years, the chip giant Nvidia (NVDA) Was under the spotlight because investors may have flocked to the largest beneficiary of the megafente of artificial intelligence (IA). After a breathtaking rally of 1,371% over five years and its dominant position on the AI fleas market, Nvidia has not shown any signs of slowdown.
That is to say until a Chinese reached name of the name of In depth And President Donald Trump’s pricing strategy has put a premature stop on the Nvidia freight train. Now down 18% on the basis of the YTD, will Nvidia trade take place?
About Nvidia Stock
NVIDIA specializes in GPUs, AI platforms and high-performance IT solutions. Its products serve various sectors, including games, data centers, automotive and professional visualization. In addition, the CUDA programming model of the company played a decisive role in the search for research and AI applications.
With a market capitalization of 2.6 billions of dollars, Nvidia is one of the most precious companies in the world.
Consequently, the recent decrease in the company’s action price presented itself as a gold opportunity for the two investors who missed the Nvidia Bull Run earlier and for those who seek to increase the weighting of action in their portfolios. For what? Let’s take a closer look.
Basic: as solid as that
Nvidia has reached such a step where the street estimates simply will not be enough for the company. The company will have to do something “more”.
This is why, despite going beyond Nvidia’s expectations in revenues and profits for the fourth quarter of its 2025 financial year, the company’s shares faced downward pressure this year. The market reaction suggests that, although the figures are strong, investors probably predicted an even more spectacular performance.
Quarterly revenues reached a new record at $ 39.3 billion, marking a sharp increase of 78% compared to the same period a year earlier. In this area, the NVIDIA data centers segment stood out with an impressive jumper from 93% from one year to the next, reaching $ 35.6 billion, highlighting its central role in the company’s overall growth trajectory.
The profit per share climbed 71% of the previous year to $ 0.89, making it the ninth consecutive quarter during which Nvidia delivered profits above consensual estimates. However, not all measures moved in the same direction. The raw margins shrunk at 73.5%, against 76.7% a year ago, which indicates that the increase in competitive pressures can start to leave their brand.
In terms of cash production, Nvidia has given robust results. Net operations net cash flows reached $ 16.6 billion for the quarter, compared to $ 11.5 billion during the same period last year. The company left the quarter with a formidable $ 43.2 billion in cash reserves and had no short -term debt, reflecting a solid liquidity position which continues to offer strategic flexibility.
The perspectives remain strong
As a reminder to my previous analysisThe current overvoltage of capital investments towards AI infrastructure by technology giants such as Microsoft (Msft)Amazon (Amzn)Meta (Meta)and google (Googl) should maintain the momentum for the demand for advanced NVIDIA processors. At the heart of this trend is the growing need for generative AI systems – an area where Nvidia remains the dominant supplier. Its Blackwell and H100 GPUs are at the forefront of the activation of complex training and inference operations through a range of applications, including hyperscaler groups, business adoption and sovereign infrastructure. The fact that the Blackwell platform has generated $ 11 billion in revenue during its first quarter underlines the full leadership of Nvidia not only in the manufacture of fleas, but to provide the fully computer computer bases.
At GTC 2025 Event, NVIDIA revealed additional efforts to strengthen this domination thanks to the introduction of its new generation networking switching architectures. These innovations represent a jump in bandwidth capabilities. They promise to minimize the loss of energy while allowing immense clusters of GPU to coordinate with exceptional efficiency.
Thanks to its vast integration of software, networking, silicon and cloud services, NVIDIA is increasingly considered to be the fundamental infrastructure of IT. The company has evolved far beyond a supplier of semiconductors; It builds and orchestra now the operational backbone of the AI revolution.
Overall, even after presenting such huge growth rates in recent years, analysts have always foreseen that Nvidia’s revenues and revenues are increasing to a much faster clip than industry. Its income growth rates and term profits are set at 60.38% and 66.24% compared to the medians in the sector 6.68% and 10.73%.
NVDA action analysts opinions
Thus, analysts judged that Nvidia stored a “strong purchase” with an average target price of $ 175.05, which indicates an increase up of around 62% compared to current levels. Out of 43 analysts covering the title, 37 have a “strong purchase” note, two have a “moderate Buy” rating and four have a “Hold” rating.
On the date of publication, Pathikrit Bose Did not have (directly or indirectly) positions in any of the titles mentioned in this article. All information and data of this article are only for information purposes. For more information, please consult the Barchart disclosure policy here.