Why Is Nvidia Stock Down Today Despite Massive AI News?
Nvidia stock (NVDA) is slipping again—down 2.3% in early Friday trading—even after dropping a bombshell AI announcement that should’ve had Wall Street cheering. The chip giant just opened up its highly sought-after server platform to rivals like Qualcomm, MediaTek, and Fujitsu. Qualcomm called it a leap for “high-performance, energy-efficient computing.” The move could supercharge global AI infrastructure and boost Nvidia’s reach—but the stock still sagged. So what gives?
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Turns out, not everyone’s convinced. HSBC’s Frank Lee stuck with a Hold rating and a $120 target. Raymond James analyst Srini Pajjuri gave Nvidia an Underperform at $150. And even bullish Mizuho analyst Vijay Rakesh—despite lifting his target to $168—flagged near-term choppiness. So while Nvidia just opened the gates, investors may still be waiting for the parade.
Nvidia Faces Headwinds from Export Curbs and Tariffs
Nvidia is still dealing with the fallout from H20 export restrictions to China. HSBC warned of a $5.5 billion licensing hit. Raymond James added that Section 232 tariffs could hit near-term sentiment. And while Nvidia expects July revenue to rise another $3 billion, that’s slower than its past $4-$5 billion quarters.
Even so, Nvidia remains a giant. It posted 114.2% revenue growth last year and holds a 75% gross margin. Its new Blackwell platform, which powers next-gen AI servers, is already being adopted worldwide. Analysts say the Middle East may help pick up China’s slack as AI infrastructure booms.
Nvidia Stock Moves Reflect Complex Economic Forces
The reaction to Nvidia’s announcement shows just how complicated stock movement can be. Even groundbreaking product news doesn’t always lead to immediate rallies. For a sustained climb, multiple forces need to line up—analyst ratings, revenue guidance, geopolitical factors, and broader market sentiment.
Sometimes, great news gets overshadowed by caution about valuations, export risk, or macroeconomic policy. That’s why investors are still watching the stock closely. Until those variables move in sync, it’s possible for even a company like Nvidia to fall flat on massive headlines.
Is Nvidia a Buy, Sell, or Hold?
On TipRanks, Nvidia holds a Strong Buy rating based on 40 analyst reviews. The split includes 34 Buys, 5 Holds, and just 1 Sell. The average 12-month NVDA price target is $164.51, implying a 21.50% upside from the last close at $135.40. Targets range from $100 on the low end to $200 on the high end—showing optimism is alive, even if short-term concerns keep the brakes on.
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