Wall Street Analysts Predict Potential Challenges for This Popular AI Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 23 2025
0mins
Should l Buy NVDA?
Source: Fool
Earnings Report Anticipation: Nvidia is set to report its Q2 2025 earnings on August 27, with analysts predicting a 48.5% year-over-year growth in earnings and nearly $46 billion in revenue driven by AI chip demand.
Analyst Concerns: Despite optimism, some analysts express caution regarding Nvidia's stock due to potential losses from U.S. trade restrictions with China, which could cost the company about $8 billion in revenue for Q2.
Mixed Ratings: While most analysts maintain a "buy" or "outperform" rating for Nvidia, Deutsche Bank has set a price target suggesting a possible 12% decline, while KeyBanc shares similar concerns but still rates the stock as "overweight."
Long-term Growth Outlook: Analysts expect Nvidia to beat Q2 earnings forecasts, but there are worries about guidance for Q3; long-term growth projections suggest Nvidia may not be a clear buy at current prices unless it experiences a significant drop post-earnings.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 201.680
Low
200.00
Averages
264.97
High
352.00
Current: 201.680
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strategic Shift Possible: Despite the rejection, United Airlines may pivot towards smaller acquisitions or asset divestitures to satisfy an administration favoring landmark deals while avoiding concerns over consumer pricing monopolies, thereby maintaining competitive positioning.
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- European Market Emergence: European startups like UK-based Olyx and Netherlands-based Etcetera have also attracted significant investments exceeding $200 million, highlighting a global acceleration in interest and funding for AI chip technology.
- Market Transition Trend: As AI technology shifts from model training to everyday applications, startups argue that Nvidia's chips are not optimally designed for inference, emphasizing the need for more effective system architectures to support AI applications, reflecting a strong market desire for innovative solutions.
See More
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- Market Adaptability: This memory product adapts low-power memory technology previously used in smartphones for servers, particularly AI servers, showcasing SK hynix's flexibility and innovation in meeting the demands of emerging markets.
- Market Reaction: SK hynix's shares rose 3.4% in Korean trading, reflecting positive market sentiment towards its new product, while Nvidia's shares fell slightly in premarket trading in the U.S., indicating investor caution regarding the AI hardware market.
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