Nasdaq Gains Over 1%; Nvidia Posts Strong Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 29 2025
0mins
Should l Buy NVDA?
Source: Benzinga
U.S. Stock Market Performance: U.S. stocks rose this morning, with the Nasdaq Composite increasing over 1%, while NVIDIA reported strong first-quarter revenue of $44.1 billion, exceeding expectations.
Market Trends and Economic Indicators: Asian markets closed higher, but initial jobless claims in the U.S. rose to 240,000, and the economy shrank at an annualized rate of 0.2% in Q1, slightly better than earlier estimates.
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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: 220.780
Low
200.00
Averages
264.97
High
352.00
Current: 220.780
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 Partnerships: Recently, Nvidia partnered with ServiceNow to develop AI agents, launched the Nemotron 3 Nano Omni model, and signed a deal with Corning to build optical solution factories, showcasing its comprehensive strategy in both AI hardware and software.
- Market Dominance: Nvidia's dominance in the AI market is increasingly evident, as cloud giants like Amazon, Alphabet, and Microsoft continue to rely on its powerful GPUs, despite their own chip development efforts, highlighting Nvidia's irreplaceable role in the data center market.
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- Significant Sales Growth: Cerebras reported $510 million in sales last year, a notable increase from $290.3 million in 2024, indicating rapid growth in the AI infrastructure market.
- Strategic Partnerships: The company has partnered with OpenAI to integrate its technology into OpenAI's computing systems, further solidifying its competitive position in the AI chip sector.
See More
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- Stock Price Surge: Nvidia shares rose over 2% in early Thursday trading, extending their rally, reflecting investor optimism surrounding Jensen Huang's visit to China and the potential trade breakthroughs during bilateral talks with Chinese leadership.
- Sales Approval Granted: The U.S. Commerce Department has approved Nvidia to sell H200 chips to up to 10 Chinese firms, including Alibaba, Tencent, and ByteDance, allowing each approved customer to purchase up to 75,000 chips under U.S. licensing terms, significantly enhancing Nvidia's sales potential in the Chinese market.
- Strong Market Sentiment: On Stocktwits, retail sentiment for NVDA remains firmly in the 'extremely bullish' zone, with several traders expecting the stock to rally ahead of Nvidia's upcoming quarterly report, indicating strong market confidence in the company's future performance.
- China Market Pressures: Despite Nvidia's revenue from China dropping to nearly zero, with Huang noting a decline from $25 billion two years ago, the recent stock rebound suggests market expectations for recovery, highlighting the significant impact of U.S. export restrictions on its business.
See More
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- U.S.-China High-Level Talks: President Trump and a delegation of tech titans are meeting with President Xi Jinping in Beijing, with the market closely watching the potential implications of these talks on U.S.-China tech relations, particularly in the context of easing tech restrictions that could pave the way for future trade cooperation.
- Chip Purchase Approval: The U.S. has reportedly cleared around 10 Chinese firms, including Alibaba and Tencent, to purchase Nvidia's H200 chips, potentially unlocking $20 billion in revenue for these companies, indicating a significant opportunity for collaboration in the tech sector between the two nations.
- New Fed Chairman: Kevin Warsh was confirmed as the new Federal Reserve Chairman by a narrow 54-45 Senate vote, with market expectations regarding his policy direction likely to influence future monetary policy and investor confidence, especially against the backdrop of strong tech stock performance.
- Cisco Restructuring and Stock Surge: Following a Q3 earnings beat, Cisco announced a restructuring plan that includes cutting 4,000 jobs to pivot towards AI infrastructure, resulting in a 20% increase in its stock price during premarket trading, reflecting positive market sentiment towards its strategic transformation.
See More
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- Trade Agreement Outlook: The Trump administration aims to push for increased Chinese purchases of American soybeans and Boeing aircraft, with analysts suggesting this could culminate in a formal trade agreement, thereby stabilizing economic relations between the two nations.
- Trend Towards Multipolarity: Taking place against a backdrop of global trade tensions and conflicts, analysts indicate that improved U.S.-China relations could facilitate a shift towards a multipolar world, diminishing the influence of unipolar hegemony.
- Executive Team Involvement: Trump's entourage includes executives from major companies like Tesla and Apple, raising expectations for a more favorable business environment, potentially leading to a large-scale agreement for American goods purchases, further strengthening economic ties between the two countries.
See More
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- Summit Significance: Nvidia CEO Jensen Huang was invited by Trump to join the China summit, emphasizing the importance of representing the U.S. and highlighting his pivotal role in international business relations.
- U.S.-China Relations: Huang noted the strong relationship between Trump and Xi, suggesting that this provides an opportunity to build a stronger partnership, reflecting the influence of tech leaders in diplomacy.
- Trump's Commitment: At the summit, Trump stated he would ask Xi to 'open up' the Chinese market, underscoring his focus on enhancing U.S.-China economic cooperation.
- Delegation Composition: The delegation includes prominent leaders such as Tesla's Elon Musk and Apple's Tim Cook, indicating the high level of interest and expectations from the U.S. business community regarding the Chinese market.
See More
