In 2025, Nvidia (NASDAQ: NVDA) stopped appearing like a safe investment as macroeconomic headwinds exacerbated the concerns over the semiconductor giant’s massive valuation.
By mid-April, however, NVDA shares again appeared to be a strong buy for the second quarter (Q2) as the market started settling into the new tariff-ridden reality and the blue-chip chipmaker started unveiling its forward-looking plans.
On April 14, the semiconductor giant announced it would take a critical step in weathering the trade war by setting up production capacities for building supercomputers in the U.S.
President Donald Trump welcomed the development, saying that the chipmaker’s $500 billion investment will be stimulated with the expedition of all necessary permits. He added that all firms who choose to participate in the ‘Golden Age of America’ will receive such preferential treatment.
With the endorsement and high-powered computers becoming an increasingly important narrative, especially with the recent breakthroughs in quantum computing, Nvidia stock is poised to enjoy strong tailwinds from the development.
Nvidia bolsters fast food chain with AI orders
Beyond reducing its reliance on the smoothness of international supply chains, Nvidia has taken other, seemingly more mundane steps to bolster its position.
Already in March, the semiconductor giant entered into an artificial intelligence (AI) partnership with Yum! Brands Inc. (NYSE: YUM) – the company that owns KFC, Taco Bell, and Pizza Hut – to empower order-taking with novel technology and boost restaurant efficiency.
Lastly, thanks to the strong headwinds in 2025, NVDA shares are trading 25.85% below their January 6 high of $149.43 and are changing hands at $110.80. Such a setup ensures that the equity has some room to rise before investors once again become uncomfortable due to valuation.
The potential upside is further bolstered by the fact that the chipmaker is yet to unveil its performance in the first quarter (Q1) of the year.
The filing, scheduled for May 28, is almost guaranteed to come in better than many fear, as many of the adverse developments that have triggered stock market turmoil are unlikely to have impacted the business performance in the three-month period.
Will NVDA stock be a strong buy in Q3?
Still, the question if Nvidia shares will remain strong investments in the third quarter remains open. Many of President Trump’s tariffs and the international countermeasures in the trade war will have left their mark between April and June.
Furthermore, measures such as Taiwan Semiconductor Manufacturing’s (NYSE: TSM) investments in manufacturing capacity inside the U.S. and Nvidia’s own supercomputer-focused plants onshore are guaranteed not to yield their fruits within the time frame.
Nvidia, for example, expects its two new AI supercomputer plants to ramp up production within 12 to 15 months.
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