nvidia 
NVDA It has dominated the AI story over the past two years, driving high-tech stocks to their all-time highs in January 2025. However, today, chipmaker stocks are down 11% from record levels as investors worry about the company slowing down. Growth and noble evaluation.
In late January, NVDA stocks have reached a market value of 4 in a single trading session, following a Bloomberg report that said President Donald Trump’s administration is considering new restrictions on NVIDIA’s chip sales to China. It has decreased by %.
Nvidia also lost 17% in market value two weeks ago. This decline was caused by news about Deepseek, a Chinese startup that developed cost-effective AI models using cheap chips and less data. The development has raised concerns about Nvidia’s future chip sales and market control.
NVIDIA’s shares have recovered in part, but investors continue to be nervous about the growing trade war between the US and China, the two biggest economies of the world. Nvidia said it was “ready to work with the US administration,” and said the current restrictions were based on performance levels five years ago.
Will Nvidia beat its fourth quarter estimate?
Once the revenue season is over, all eyes will be the fourth quarter results for Nvidia in 2025. The report is scheduled for February 26th. Consensus estimates Nvidia is expected to report revenue of $38.13 billion for the fourth quarter. 1 billion yen from the same period last year. In comparison, adjusted earnings per share are projected to expand from $0.52 per share to $0.85 per share.
If NVIDIA meets these estimates, its revenues will increase to $129.3 billion in 2025. The company has concluded fiscal year 2025 thanks to its asset optical model, pricing capabilities and high operating leverage. Adjusted earnings were $2.95 per share, up from 2024 $1.30 per share.
What’s next for NVDA stocks?
With Nvidia being the leading beneficiary of this trend, major tech companies continue to invest in AI infrastructure. Nvidia’s financial performance reflects this control.
In the third quarter, revenue almost doubled to $35.1 billion, driving $30.8 billion in data center revenue. Jensen Huang predicts that AI data center spending could reach $2 trillion over five years, backed by heavily invested from companies such as Microsoft. 
msft ($80 billion in 2025) and a joint commitment of Oracle and $500 billion from Oracle. 
orcland Softbank 
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However, Nvidia faces several short-term challenges. This includes concerns about potential margin pressures, the development of proprietary chips, ongoing China’s export restrictions and AI technology adoption rates as the AI-GPU shortage decreases.
NVIDIA’s forward P/E ratio 29.1x is not dramatically higher than the S&P 500 index 
spx 24x, some analysts are worried about the historically high price sales rate and potential decline in performance in 2025, despite established revenue streams from games and cryptocurrency mining. Masu.
Are Nvidia stocks overvalued?
Analysts tracking NVIDIA expect sales to rise from $129 billion in 2025 to $160 billion in 2026. 1 billion over the next 12 months.
At the price of the subsequent FCF, 40 times the price, the company was valued at a market capitalization of $3.8 billion, indicating a 15% increase from its current level.
Of the 43 analysts covering Nvidia stock, 37 recommend “strong buys”, two recommend “medium buys”, and four recommend “hold.” The average target price for NVDA stocks is $177.81, exceeding the current trading price of $132.80.
On the date of publication, Aditya Raghunath had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, see BarChart’s disclosure policy.
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