NVIDIA (Nasdaq: NVDA)) I can’t take a break in 2025. The last blow came last week, when the Asset The administration has announced that the company would now need an export license to send its H20 chips, which are designed for the Chinese market. The impact is not a minor. NVIDIA plans to take a 5.5 billion dollars in the first quarter, citing costs linked to the unsold inventory, supplier and reserves’ obligations.
This is the last setback for the IA Giant, who has already lost 26% of its value this year in the middle of the anxiety of investors to the decrease in IA spending among the hyperscalers and fears of an escalation of the American-Chinese trade war.
Recognizing the many concerns, an investor, known by the pseudonym of the Asian investor, believes that panic is exaggerated.
“Despite these challenges, the solid fundamentals of Nvidia and the dominant position on the GPU AI market make it a convincing purchase, in particular given its current valuation,” says the 5 -star investor.
As for Chinese drama? The Asian investor does not lose sleep. H20 fleas are lower margin offers, and China represents only 12% to 13% of NVIDIA’s overall income – “a relatively low percentage”, according to the investor.
The real money, he says, still comes from the United States, where the demand of corporate customers remains robust. The last power of Nvidia, The Blackwell Chip, continues to arouse a strong interest from the giants of American technology, which are “still standing first”.
The demand in all areas is also warmed up, notes the investor, with a recent report guiding an increase of 76.4% of the generative investments of the AI in 2025. NVIDIA, which controls 90% of the GPU AI market, will benefit from a solid piece of this growing demand.
In addition, all fears have reduced the valuation of the company to some 30% below its price ratio / average benefit to 1 year, creating “an opportunity to buy manuals”. In other words, for those waiting for the right entry point – the investor thinks that is all.
“Investors should capitalize on negative feeling and buy NVIDIA actions at a discount, because long -term growth prospects remain robust,” urges the Asian investor, which assesses the NVDA Stock a strong purchase. (To look at the history of the Asian investor, Click here))
Wall Street also remains firm in its support for the NVDA. With 37 purchase recommendations and 5 prisoners, NVDA has a strong purchase consensus note. Its average price target of 12 months of $ 168.49 implies an increase in increase of 70% for the coming year. (See NVDA actions forecast))
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Warning: The opinions expressed in this article are only those of the star investor. Content is intended to be used for information only. It is very important to do your own analysis before investing.