Nvidia (NVDA) has been facing some challenges recently, including concerns over yields limiting shipments of its liquid-cooled rack systems containing Blackwell chips. The stock has also been impacted by reports of export curbs and potential tariffs under the Biden administration. Despite these challenges, analysts are still bullish on Nvidia’s long-term prospects, with some raising price targets and maintaining buy ratings.
Nvidia’s data center business is expected to generate significant revenue, with projections of $113 billion for the year ending in January. The company’s earnings growth remains strong, with an ideal Earnings Per Share Rating of 99. Analysts expect Nvidia to outperform the S&P 500 in terms of revenue and earnings growth through 2026.
While Nvidia’s stock has faced some headwinds in recent months, including a challenging December and ongoing concerns about chip supply constraints, analysts are still optimistic about the company’s ability to innovate and maintain its position as a leader in the AI chip market. Investors will be closely watching for updates on Nvidia’s Blackwell chip ramp up and early indications for its next chip, Rubin.
Overall, despite recent challenges, Nvidia remains a top AI stock to watch and a key player in the semiconductor industry. Investors will be looking for signs of a rebound in the stock and confirmation of its long-term growth potential.