Positive.

From Yahoo Finance: 2025-05-16 00:03:00

Nvidia shares have surged 15% in the last five days due to positive news. The chipmaker struck a $15-$20 billion deal with Saudi company Humain, focusing on AI and data center infrastructure. Nvidia CEO Jensen Huang highlighted the importance of national investment in compute capacity in 2023.

Nvidia faced pressure in April with a $5.5 billion charge and export restrictions for its H20 GPUs to China. However, reports of lowered U.S.-China tariffs lifted the tech stock market. Despite 171% growth in 2022, Nvidia’s 2023 growth has been stagnant due to various factors.

Wall Street veteran Chris Versace praised Nvidia’s Saudi deal, stating it circumvents U.S. restrictions on AI chip exports to China. Foxconn, a key Nvidia manufacturer, reported record AI server sales, though it trimmed its 2025 growth outlook due to shifting U.S. tariffs.

Versace believes that despite U.S. tariffs on Taiwan, demand for AI servers from Foxconn and Nvidia remains strong. He raised Nvidia’s price target to $160, anticipating future growth catalysts like Huang’s upcoming keynote and the earnings report.

Bank of America analysts raised Nvidia’s price target to $160 post-Saudi deal, projecting $15-$20 billion revenue annually. “Sovereign AI” could ease U.S. data center power constraints and offset challenges from restricted exports to China.

Read more: Veteran fund manager unveils bold Nvidia stock price target after rally