Potential elimination of AI chip export limitations proposed by Trump, prompting debate on Nvidia stock strategies.
Fresh Take:
NVDA shares are on the rise, driven by reports suggesting President Trump might lift AI chip export restrictions imposed by Biden. This potential move could ease the pain inflicted on Nvidia's earnings due to the previous restrictions. As of now, Nvidia stock has spiked more than 25%, recovering from its slump in early April.
However, Trump's possible replacement of the AI diffusion rule with a global licensing regime could add more complexity to the situation. These agreements, potentially involving tariff negotiations, might end up being even stricter than Biden's policies, according to Citi analyst Atif Malik. Furthermore, Trump's administration is contemplating imposing up to 25% tariffs on semiconductors, which could further harm NVDA's business in the latter half of 2025.
Despite these hurdles, Bernstein remains optimistic about NVDA shares, reiterating its "Outperform" rating and setting a $185 price target—indicating a potential upside of 55% from current levels. Individual investors seem to share this sentiment, pouring $1.1 billion into NVDA over the past week.
The consensus among analysts remains positive, with a "Strong Buy" rating and a mean target of $166, hinting at potential upside of over 40%.
Insights:
- Analysts have a median one-year price target for NVIDIA at $164.23, suggesting significant upside potential.
- Some projections suggest the stock could reach around $153 by the end of the year, based on technical analysis.
- NVIDIA is scheduled to report earnings on May 28, and market expectations are high.
- For 2025, NVIDIA is projected to have revenue of $121.255 billion and net income of $68.392 billion, translating to earnings per share (EPS) of $2.75.
- In the realm of finance and general-news, NVDA shares have soared, driven by optimism about Trump potentially lifting AI chip export restrictions imposed by Biden.
- The potential easing of restrictions could alleviate some of the financial burden inflicted on Nvidia's earnings, as the stock has surged more than 25%.
- However, the possibility of Trump replacing the AI diffusion rule with a global licensing regime could add complexity, potentially involving tariff negotiations that might be even stricter than Biden's policies.
- Trump's administration is considering imposing up to 25% tariffs on semiconductors, which could further impact NVDA's business in the latter half of 2025, a concern that technology investing may need to consider.
- Despite these challenges, analysts remain bullish on NVDA, with a "Strong Buy" rating and a mean target of $166, suggesting a potential upside of over 40%.
