‘Don't Miss the Next Leg Higher,' Says Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) stock might have been a major AI play over the past few years, but recent times have proven more challenging for the chip giant. The stock is down 17% year-to-date, pressured by a mix of macro factors (such as China tariffs) and company-specific headwinds (e.g., concerns that huge growth is slowing, the rise of DeepSeek, and issues with the Blackwell ramp-up).
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Still, for investor Kevin George, the selloff marks more of a setup than a setback. After holding a bearish stance, he now views the pullback as a 'stable market correction,' one that opens the door for investors to catch the 'next leg higher.'
Part of George's renewed optimism stems from shifting winds in the geopolitical arena. After rattling markets with sweeping tariffs, Trump now appears to be easing off the throttle, a shift that George believes reduces risk and could restore confidence across the chip sector.
While global tariffs have been lowered to a flat 10%, the latest rumors suggest a 50% – 60% tariff specifically on Chinese goods (down from the current up to 145%).
Additionally, following earlier setbacks with the Blackwell series, Nvidia has had time to sort out the issues with the new product.
The company has also mitigated some offshoring risks by initiating U.S.-based supercomputer manufacturing. Production of Blackwell chips is now underway at TSMC's facility in Phoenix, Arizona, and Nvidia is constructing supercomputer manufacturing plants in Texas, which are expected to reach capacity within 12 to 15 months.
Furthermore, Nvidia recently unveiled its GeForce RTX™ 5060 GPU lineup. Set to hit the market in April and May, the new series will introduce Blackwell architecture and enhanced rendering capabilities to gamers, starting at a price point of $299. 'This could open additional revenue for the company over the coming quarters,' George points out.
Even the $5.5 billion write-down related to the China H20 restrictions can be seen in a favorable light. It is a result of being at the 'forefront of the artificial intelligence arms race,' but it's a setback Nvidia can likely absorb in the upcoming quarters.
'Despite the recent headwinds,' George sums up, 'Nvidia is on a strong fiscal path, with a growing cash pile that is being reinvested into shareholder returns and AI equity bets.'
Accordingly, George has upgraded his NVDA rating from Sell to Buy. (To watch George's track record, click here)
It's mostly Buys amongst the analyst community on Wall Street too; the stock claims a Strong Buy consensus rating, based on a mix of 35 Buys, 5 Holds and a single Sell. At $165.22, the average price target factors in a one-year gain of 48%. (See NVDA stock forecast)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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