Nvidia’s stock slipped 2.3% in early Friday trading despite the chip giant announcing significant news that should have had Wall Street cheering. The chip giant opened up its highly sought-after server platform to rivals like Qualcomm, MediaTek, and Fujitsu. Qualcomm called it a leap for “high-performance, energy-efficient computing.” The move could potentially supercharge global AI infrastructure and boost Nvidia’s reach.
However, not everyone is convinced. HSBC stayed with its Hold rating and a $120 target, while Raymond James issued an Underperform rating at $150.
Despite lifting its price target to $168, even bullish Mizuho flagged short-term choppiness. While Nvidia is making strategic moves, investors may await a more straightforward path forward. Nvidia is still dealing with the fallout of export restrictions on China.
HSBC warned of a potential $5.5 billion licensing hit. Raymond James added that Section 232 tariffs could impact near-term sentiment. Moreover, while Nvidia expects July revenue to rise by another $3 billion, this is slower than its previous $4-$5 billion quarters.
Stock movement despite major announcements
Nevertheless, Nvidia remains a giant, posting 114.2% revenue growth last year and maintaining a 75% gross margin. It’s new Blackwell platform, which powers next-gen AI servers, is already being adopted worldwide.
Analysts suggest that the Middle East may help offset China’s demand reduction as AI infrastructure expands globally. The reaction to Nvidia’s announcement highlights the complexity of stock movements. Even groundbreaking product news does not always lead to immediate rallies.
For a sustained climb, multiple factors need to align—analyst ratings, revenue guidance, geopolitical considerations, and broader market sentiment. Sometimes, great news is overshadowed by concerns about valuations, export risks, or macroeconomic policies. Investors are closely monitoring these variables; until they align, Nvidia’s stock may struggle to gain momentum despite positive headlines.
Nvidia holds a Strong Buy rating based on 40 analyst reviews, which include 34 Buys, 5 Holds, and just 1 Sell. The average price target is $164.51, implying a 21.50% upside from the last close at $135.40. Price targets range from $100 on the low end to $200 on the high end, indicating that while there is optimism, short-term concerns may still temper market enthusiasm.
Although Nvidia’s announcement regarding its server platform is a significant step towards expanding its market influence, the stock appears to be weighed down by broader economic concerns and mixed analyst ratings. As the company navigates export restrictions and tariff impacts, investors and analysts will continue scrutinizing Nvidia’s strategic moves and financial performance.
