TLDR
- NVIDIA stock closed at $144.69, up 1.92%, sitting just 3% below its all-time record high
- Analysts maintain $172.24 average price target with some forecasting $220, representing 40% upside potential
- GTC Paris conference announcements included over 3,000 exaflops of AI computing deals across EU countries
- China export restrictions caused $4.5 billion hit with additional $8 billion write-down expected this quarter
- Company invested $25 million in robotics firm Skild as part of future AI expansion strategy
NVIDIA stock climbed 1.92% on Monday to close at $144.69. The AI chip maker now sits within striking distance of its record high.
The stock has surged over the past two months. It’s now just 3% away from its all-time closing record.
CEO Jensen Huang recently attended events in Paris including the GTC conference. The company made several announcements that caught analysts’ attention.
NVIDIA secured deals worth over 3,000 exaflops of AI computing power. These agreements span multiple EU countries and include AI factories and supercomputing centers.
The demand for Blackwell chips continues growing. This supports the outlook for NVIDIA’s core semiconductor business and AI product stack.
Wedbush analyst Dan Ives believes China export restrictions could ease. He thinks technology transfers might be part of upcoming trade negotiations.
Huang appears less optimistic about China restrictions lifting. Both agree that Huawei’s competitive GPUs give China AI capabilities regardless of restrictions.
Sales of H20 chips to China could resume suddenly. This would bring billions in lost revenue back into play.
New Investment Moves
NVIDIA invested $25 million in robotics company Skild’s Series B funding round. The investment values Skild at nearly $4.5 billion.
The move positions NVIDIA in robotics and autonomous vehicles. These areas represent the future of AI development.
Huang sees robotics as a key revenue driver for years ahead. The investment secures NVIDIA’s position in emerging AI markets.
NVIDIA also struck deals during President Trump’s Middle East visit. Saudi Arabia and UAE will receive thousands of AI chips through these agreements.
The company expanded its sovereign AI business. This involves countries building their own national AI capabilities.
Analyst Outlook Remains Strong
Analysts track 43 ratings for NVIDIA with a Moderate Buy consensus. The average price target sits at $172.24, representing 19% upside.
Some analysts forecast the stock reaching $220. That would represent a 40% gain from current resistance levels.
Recent revisions brought market expectations lower. In the past 90 days, 32 of 34 revisions were reductions.
Lower expectations create an easier hurdle for earnings beats. The revision trend increases odds of outperformance.
Technical indicators show bullish momentum in June. The stock rebounded from tariff-induced lows earlier this year.
NVIDIA faces headwinds from China restrictions. The company reported a $4.5 billion hit in recent earnings.
An additional $8 billion write-down is expected this quarter. These losses stem from the Trump administration’s chip export ban.
Despite China challenges, first quarter earnings beat revenue expectations. Strong Blackwell chip sales and server equipment drove results.
The upcoming earnings report represents the primary near-term catalyst. Analysts expect another quarter of strong growth despite revenue slowdown forecasts.
NVIDIA’s technical setup suggests new highs could come by late Q2 or early Q3. The stock trades at overbought levels which could trigger a correction first.
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