- Nvidia stock price will likely stay afloat amid new trade talk uncertainty between the US and China, as other key fundamentals remain strong.
Nvidia stock price has risen by 3.8% in the last five days and was up in the pre-market session on Wednesday, trading at $142.25. The uptrend is propelled by its forecast-beating earnings reported last week and rising prospects of the loosening of export restrictions by the United States government.
Officials in the Trump administration, including Treasury Secretary Scott Bessent have been upbeat over the commencement of direct talks between the US President and his Chinese counterpart, Xi Jinping. Among the key things set for negotiations is the current restriction on the export of high-end AI GPU chips, including Nvidia’s H20. The company recently wrote off $8 billion worth of H20 orders.
Furthermore, Nvidia (NASDAQ: NVDA) estimates that China’s AI GPU market could grow to $50 billion in the next three years. In addition, the company missed out on $2.5 billion worth of revenue in the last quarter due to the existing trade climate. Therefore, lifting of such restrictions could create a substantial revenue stream for the company. However, despite the barriers to entry in China, Nvidia generated $44 billion in revenue, equivalent to a 66% growth year-over-year.
The bullish undercurrent on Nvidia stock price is also supported by President Trump’s move to suspend “AI Diffusion” Rule. Introduced by the Joe Biden administration, the rule classified countries into “tiers” depending on the strength of their geopolitical restrictions with the United States, with each tier having different sets of restrictions.
Following its latest earnings results, analysts have issued upbeat forecasts on NVDA price. Mizuho Securities projects the share price to be at between $160 to $180, while UBS analysts have their target at $175. These figures infer growth of between 16% to 23% from the current level. Nvidia issued a guidance of $45 billion for the current quarter, adding support to its share price outlook.
Nvidia Share Price Prediction
On the chart above, Nvidia stock price pivots at $140.30 and action above that level signals bullishness. That will likely see the first resistance encountered at $143.60. However, an extended control by the buyers will clear that hurdle and potentially test $145.00.
On the downside, breaking below $140.30 will invite sellers to take control, with the first support likely to be at $138.20. The upside narrative will be invalid if the price breaks below that level. In addition, a stronger momentum could send the price lower to test $136.20.
