Is Nvidia Stock a Buy Below $175?

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NVDIA (NVDA) pioneer moved in a turbulent geopolitical background to provide results in the second quarter that outperformed modest expectations last week. The profits came just two weeks after the company agreed to transfer 15 % of the H -Frex sales to China to the United States government, which reflects the sensitivities of continuous trade.

Earlier, NVIDIA warned of a loss in the second quarter of $ 8 billion after president Donald Trump announced a prohibition in April of chip sales to China, which was later canceled. The company sold any H20 chips to Chinese clients, but it booked $ 180 million by launching the inventory of a customer outside China.

Even with the surprise of positive profits, the shares declined the day after the report report as investors were weighing the nuances. Data center sales, which formed the backbone of NVIDIA revenue, increased sharply but slightly less than Wall Street’s expectations.

Colette Kress said that the H20 could contribute to billions of dollars to $ 5 billion in the revenue of the third quarter if political issues are eased. After touching a height of 52 weeks at a value of $ 184.48 last month, NVIDIA shares were often traded. Over the past five days, the stock has decreased by 7 %, leaving the market to assess its next steps carefully.

Its headquarters is located in Santa Clara, California, Nafidia has strengthened as a global pioneer in visual computing techniques and the Inventor of the GPU (GPU). With a maximum market limit of about $ 4.1 trillion, the company has moved from personal computer drawings to advanced artificial intelligence solutions (AI), operating high -performance computing, games and virtual reality.

Within 52 weeks last, NVDA shares increased by 56.6 %, while YTD (YTD) gains is 26 %. In the past three months, the stock has increased by 19.8 %, although it witnessed a decrease of 2.6 % during the past month due to the last mixed narration around the arrow.

NVDA is trading with 38.12 times average modification profits, higher than the average industry but less than its historical range for five years, indicating an attractive relative assessment amid strong basic performance.

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On August 26, NVIDIA unveiled its results in the second quarter of 2026, which exceeded Wall Street’s expectations. Revenue increased by 55.6 % on an annual basis (YO) to 46.74 billion dollars, prompting the dropping of former analysts $ 46.06 billion.

The data center sales, the NVIDIA operations force, increased by 56.4 % to 41.1 billion dollars, only shy of estimate of 41.34 billion dollars. The Games Department contributed $ 4.3 billion, increasing 48.9 % of the figs last year, reflecting the continued NVIDIA air conditioning with graphics processing units to support the Openai models selected on personal computers.

Meanwhile, the robots sector, a street for high administrative growth, recorded $ 586 million in sales, an increase of 69 % annually, yet a modest segment of total revenue.

The average net income jumped by 52.1 % to 25.8 billion dollars, while the profitability of the modified stock increased by 54.4 % to $ 1.05, exceeding 1.01 street expectations. The profits obtained a $ 180 million batch from the release of the H20 stock to a customer outside China, after the export it imposed earlier by the Trump administration.

Look forward, the administration expects Q3 2026 revenues of $ 54 billion, in addition to or minus 2 %. On the other hand, analysts estimate the share profitability of the share 2026 from the share profitability of 43.6 % on an annual basis to $ 1.12, a full year increasing by 40.6 % to $ 4.12, and the financial number 2027 at the bottom at 35.9 % from the previous year to $ 5.60.

After release profits, it enhances the feelings of analysts for NVDA. Joseph Moore from Morgan Stanley raised his target price from $ 206 to $ 210. JP Morgan Harn Sur raised the price of $ 170 to $ 215. Also, Keybank John Vinh has amended his estimation from $ 215 to $ 230, while maintaining the “weight gain” position.

In a similar context, Wolfe Research also raised its target price from $ 220 to $ 230 while maintaining a superior performance classification. Of the 46 analysts covering NVDA, the consensus remains a “strong purchase”, with 38 “strong purchase”, two “moderate purchases”, five “landing”, and one is advised to “strong sale”.

The average target price in NVDA of $ 210.49 represents a potential for 23 %, while the high target reflects the street of $ 250 a possible profit of 46 % of the current levels.

On the date of publication, Aanchal Sugandh did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com

2025-09-03 20:00:00

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