Nvidia stock (NASDAQ: NVDA) has lost roughly $1 trillion in market capitalization since Donald Trump took office and things continue to get worse for the chipmaker.
At press time, NVDA shares were changing hands at a price of $96.91, having marked a 15.15% loss on the 1-week chart that has brought year-to-date (YTD) losses up to 27.84%.
The latest move to the downside was caused by the White House’s H20 chip export ban. In the aftermath of the decision, which could cost the semiconductor business as much as $5.5 billion, several Wall Street analysts revised their Nvidia stock price targets downward.
Now, they have been joined by a few more equity researchers from noted Wall Street firms.
Barclays and Bank of America slash Nvidia stock price forecasts — but BofA sees buying opportunity
Barclays researcher Tom O’Malley has just cut his price target on Nvidia stock from $175 to $155. His revised forecast implies a 59.94% upside compared to current prices.
O’Malley said that Barclays updated its semiconductor and semiconductor capital equipment models to account for tariffs and the ongoing trade war, leading to reduced multiples on China and consumer risk in a note shared with investors.
In a similar vein, Bank of America’s Vivek Arya slashed his 12-month price forecast for NVDA shares from $160 to $150, a figure that implies a 54.78% upside from the current price of Nvidia stock. The BofA analyst flagged four major concerns going forward — sales in China, the artificial intelligence (AI) diffusion export rules, gross margins, and capital expenditure visibility.
On a slightly more optimistic note, Arya did highlight that BofA expects gross margin pressure and sales cuts to abate over time. Moreover, the AI diffusion rule, a piece of Biden-era legislation, has come under scrutiny from Republican senators — so there is a chance that it could be scrapped before taking effect on May 15.
In terms of capital expenditure visibility, BofA holds the opinion that a few more quarters will have to pass before cloud service providers (CSPs) can give a more accurate estimate for CY2026 figures.
Per Bank of America, the worst-case scenario that could play out would see a 10% reduction in sales and a 10% reduction in earnings per share. Lastly, the firm highlighted the near-term volatility of Nvidia stock as a buying opportunity.
Featured image via Shutterstock
