Why NVIDIA Stock Remains a Good Buy Despite a $5.5B Setback?

From NASDAQ: 2025-04-17 15:00:00

NVIDIA Corporation (NVDA) faced volatility in its stock due to trade tensions and new chip export restrictions to China. The U.S. government has mandated a federal export license for NVIDIA to sell its H20 chips to China, impacting data center revenues. Despite setbacks, NVIDIA’s long-term outlook remains positive.

NVIDIA’s new-generation Blackwell chips are in high demand, along with the CUDA software platform, boosting quarterly performance. The company holds a competitive advantage in GPUs with over 80% market share. Big cloud computing companies like Alphabet Inc. (GOOGL) and Amazon.com, Inc. (AMZN) are driving AI data center infrastructure spending, benefiting NVIDIA.

Despite initial disruptions, brokers have increased NVDA’s short-term price target by 54.8% to $173.63, with a high target of $220. NVIDIA’s forward P/E ratio of 23.72 is lower than the Semiconductor – General industry average. With a debt-to-equity ratio below industry standards, NVIDIA is positioned as a Zacks Rank #2 (Buy).

Investors may find NVIDIA stock an attractive buy, with positive long-term prospects. The company’s competitive edge, high demand for new chips, and cloud computing investments make it a favorable choice. Brokers have raised short-term price targets significantly, indicating potential growth for investors.



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