- Summary:
- Nvidia stock price has its action hinged on the tariff negotiations between the US and its trading partners, but there's more to its momentum
Nvidia stock price spiked in the pre-market session on Wednesday, gaining 5.2% and trading at $104.10 at the time of writing. An improved view of the trade ties between the United States and China helps to boost the stock’s gain. On Tuesday, US President Donald Trump said that the 145% trade penalties against China could drop significantly in the next weeks, hence increasing investor confidence.
The US government last week placed a substantial barrier against Nvidia’s business in the Chinese market with a new requirement for export permits for its H20 GPU chips. China accounts for about 13% of Nvidia’s (NASDAQ: NVDA) total revenue. Furthermore, that bottleneck will likely stay in place even if there’s a breakthrough in US-China trade talks. However, trade talks breakthrough could improve the performance of the US and the broader global economy, with the ripple effect likely being felt by the AI chips market.
However, its not all rosy for Nvidia stock price outlook.Maintaining a buy recommendation, Bank of America analysts have reduced their price target for the company from $160 to $150. Similarly, Barclays analysts have reduced their 12-month NVDA target by $20 to $155. Still, both forecasts exceed the present price by more than 50%.
Meanwhile, Nvidia CEO Jensen Huang projects a $1 trillion demand for AI chips from data centre infrastructure. With the company controlling about 90% of the AI GPUs market, that infers a substantial growth runway in a relatively short time span.
Nvidia Stock Price Prediction
Nvidia stock price pivot mark is at $100 and the momentum favours the upside to prevail. The bulls will likely meet initial resistance at $106. An extended control by the buyers will breach that barrier and could take the action higher to test $112.
On the downside, NVDA price will likely favour the bears if the price breaks below $100. The price will likely find its initial support at $96. Breaking below that level will invalidate the upside narrative, and could potentially set in motion an extended decline to test $91.
