A Wall Street analyst sees more upside for Nvidia (NASDAQ: NVDA) stock despite the equity facing uncertainty amid escalating trade tensions between the United States and China.
Indeed, the new round of trade war was initiated after the United States announced a 10% tariff on Chinese goods, with the Asian country retaliating.
Considering that Nvidia’s growth heavily relies on the global supply chain, which trade tariffs can disrupt, the stock has been in bear territory alongside the general market. Concerns persist regarding the possibility of trade tensions leading to increased component costs, squeezed margins, and possible impact on profitability forecasts for the chipmaker.
Picks for you
Meanwhile, NVDA’s share price continues to trade below the $120 resistance, ending the last session down almost 3% at $116.66. Year-to-date, the stock is down a massive 15%.
Analyst updates Nvidia (NVDA) stock price chart
These conditions, however, have had little impact on Wall Street’s outlook for Nvidia stock. Specifically, Bank of America (NYSE: BAC) analyst Vivek Arya reaffirmed Nvidia as a top stock pick ahead of its fiscal Q4 2025 earnings call on February 26.
Arya maintained a ‘Buy’ rating with a price target of $190, despite ongoing concerns over China’s retaliatory tariffs and Nvidia’s transition to its next-generation Blackwell chips.
While BofA expects Nvidia to deliver a modest earnings beat, the firm warned that gross margins could take a hit in fiscal Q1 due to China export restrictions and product shifts.
However, Arya suggested that the upcoming earnings call could mark a turning point for investor sentiment.
He anticipates Nvidia will reassure investors about Blackwell’s execution while also signaling strong confidence in its FY26/CY25 outlook, where data center sales are expected to grow more than 60% year-over-year. Notably, in recent months, concerns emerged regarding the viability of Blackwell after reports of overheating—despite the chips selling out.
Adding to the bullish case, Nvidia’s upcoming GTC conference on March 17 will shift market focus toward the company’s expanding artificial intelligence (AI) pipeline, including its flagship GB300, Rubin, and robotics initiatives.
“Reiterate Buy, top pick ahead of NVDA’s FQ4’25 (Jan) earnings call scheduled for 26-Feb. We expect modest beat/inline sales guidance and lower GM in FQ1 (Apr) given Blackwell product transition/China restrictions,” the analyst said.
Concerns about AI spending
Indeed, analysts’ takes on Nvidia remain crucial to investors, especially as the company faces concerns about AI infrastructure spending. Notably, on January 27, NVDA recorded a nearly 20% plunge following the emergence of China-based AI startup DeepSeek.
The AI model’s rise to prominence was driven by its purported ability to deliver high performance at a lower cost. This development has fueled speculation that Nvidia’s expensive chips could face new competitive pressures, possibly eating into revenues.
Interestingly, in an earlier outlook, BofA dismissed the threat from DeepSeek, stressing that Nvidia’s strong market position is unlikely to be impacted by the new AI model.
On the other hand, on January 31, Tigress Capital’s Ivan Feinseth upgraded NVDA to ‘Strong Buy’ and raised his price target to $200, dismissing DeepSeek’s impact. Similarly, on January 27, UBS analyst Timothy Arcuri reaffirmed a ‘Buy’ rating with a $185 target, citing Nvidia’s strong outlook and improved Blackwell chipset yields.
In contrast, Morgan Stanley’s Joseph Moore lowered his target to $152 on January 28, warning that DeepSeek’s AI innovations could pressure Nvidia’s pricing.
Featured image via Shutterstock
