Nvidia (NVDA) fell on Monday after several analysts updated their coverage of the stock. This includes HSBC 4.5-star analyst Frank Lee lowering his price target for NVDA stock from $200 to $185 per share. While this still represents a potential upside of 36.12%, it has shaken investor confidence in NVIDIA.
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Investors will note that Lee reiterated his “buy” rating on NVIDIA stock at the same time as lowering his price target. This shows he remains bullish on stocks, although not as bullish as before. This is not surprising given that the company faces some potential headwinds in 2025.
What will happen to NVDA stock in 2025?
First, the latest economic warnings that could impact NVIDIA stock. Experts predict that a strong U.S. economy and stable inflation could avoid a rate cut this year. Market expectations are high that the U.S. Federal Reserve will cut interest rates in 2025, which will weigh on NVDA stock.
Added to this is President-elect Donald Trump’s plan to restrict the trade of artificial intelligence (AI) chips to other countries. U.S. allies will still have access to these chips, but rivals such as China and Russia will not. This could hurt Nvidia’s business, as its chips are driving the recent AI boom.
Finally, Nvidia has been suffering some AI growing pains lately. This includes issues with new Blackwell chips that are delaying customer orders. Some of the biggest buyers, including Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL) and Metaplatforms (META), are having technical issues with the company’s latest AI chips.
Is NVDA stock a buy, sell, or hold?
Turning to Wall Street, the analyst consensus for NVIDIA is a Strong Buy, based on 36 buy ratings and 3 hold ratings over the past three months. This results in an average price target of $177.76, with a high of $220 and a low of $140. This means NVDA stock has a potential to rise by 30.79%.
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