The China-U.S. tariff truce lives on — thanks to Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 13 2025
0mins
Should l Buy NVDA?
Source: MarketWatch
U.S. Multinationals and China: U.S. multinationals, particularly Nvidia, have been facilitating lobbying for China by gaining approval to sell advanced microprocessing units, which may be used for both AI and defense purposes.
Trade of Resources: The sale of American-made microchips is linked to a trade agreement where China allows its rare-earth mineral companies to supply the U.S., highlighting the strategic importance of these materials in military applications.
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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: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
Nvidia Poised for Strong GPU Sales in China Again
- Massive Market Opportunity: Nvidia has negotiated a deal with the U.S. government to resume GPU sales to China, with CEO Jensen Huang estimating the Chinese market could generate up to $50 billion annually, significantly boosting the company's performance.
- Sales Recovery Expectations: Before the ban, Nvidia projected $8 billion in sales from China for Q2 FY 2025; if sales return to similar levels, GPU sales could exceed $30 billion, presenting substantial growth potential.
- Revenue Growth Forecast: Wall Street anticipates Nvidia's revenue will reach $326 billion for FY 2027, but given the surge in AI computing spending, actual revenue could hit $350 billion, further enhancing market confidence.
- Strong Profitability: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, it could generate $196 billion in profits, and with a reasonable 40x earnings valuation, the stock price could rise to $322, indicating a compelling investment opportunity.
See More
Nvidia's 2026 Potential Looks Promising
- Chinese Market Opportunity: Nvidia anticipates that GPU sales to China could boost its annual revenue by up to $50 billion, with previous sales at $8 billion; if restored, this would significantly enhance company performance and market competitiveness.
- Revenue Forecast Upgrade: Wall Street expects Nvidia's FY 2027 revenue to be $326 billion, but given the surge in AI computing demand and new technology releases, actual revenue could exceed $350 billion, further solidifying its market leadership.
- Stock Price Surpassing $300: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, profits could reach $196 billion, suggesting a stock price of $322 based on reasonable valuation metrics, indicating strong investment potential.
- Optimistic Investment Outlook: Based on these projections, Nvidia is poised to be one of the best-performing stocks in 2026, attracting investor interest and driving stock price appreciation.
See More
Nvidia's Stock Predictions for 2026
- Chinese Market Opportunity: Nvidia's potential return of GPU sales to China could boost annual revenue by up to $50 billion, with CEO Jensen Huang estimating that sales could exceed $30 billion if they return to previous levels, significantly enhancing company performance and driving stock price appreciation.
- Revenue Forecast Upgrade: Wall Street's average revenue expectation for Nvidia in FY 2027 is $326 billion, but given the surge in AI computing demand and new technology releases, actual revenue could surpass $350 billion, further solidifying Nvidia's market leadership.
- Stock Price Surpassing $300: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, projected profits would reach $196 billion, suggesting a stock price of $322 based on a 40x earnings multiple, indicating strong investment appeal.
- Investor Attention: Despite being excluded from Motley Fool's top stock recommendations, Nvidia's potential market performance and growth outlook continue to attract significant investor interest, reflecting a positive market sentiment towards its future.
See More
Amazon and Alphabet's AI Spending Plans for 2026 Shock Investors
- Massive Capital Expenditures: Alphabet announced a capital expenditure plan of $175 billion to $185 billion for 2026, while Amazon plans to spend about $200 billion, which will significantly pressure their free cash flow, potentially bringing Amazon's close to zero or negative.
- Cash Flow Status: Alphabet generated $165 billion in operating cash flow in 2025 and is expected to maintain positive free cash flow despite increased spending, whereas Amazon's operating cash flow of $140 billion is not growing as fast, risking negative cash flow.
- Backlog Growth: Alphabet's backlog reached $240 billion, up 55% sequentially, indicating strong demand for AI products; Amazon's backlog also grew by 22% to $244 billion, reflecting robust market demand in the cloud computing sector for both companies.
- Market Reaction: Despite the significant investment potential in AI, the market reacted negatively to both companies' spending plans, leading to stock price declines, which may present buying opportunities for long-term investors considering their strong competitive positions in high-return areas.
See More
Tech Giants Mask Underlying Market Risks
- Market Risk Concerns: While tech giants like Apple, Google, Amazon, Meta, and Nvidia demonstrate some market resilience, the overall market remains highly dangerous, prompting investors to stay vigilant against potential volatility.
- Financial Performance Analysis: These companies report strong revenue growth in their financial statements; however, market uncertainties could impact future profitability, necessitating investor attention to shifts in macroeconomic indicators.
- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
- Industry Outlook: Although the performance of tech giants may mask underlying market issues, the long-term growth of the sector still relies on innovation and the stability of market demand.
See More
USA Rare Earth Aims to Revolutionize Magnet Manufacturing
- Rare Earth Resource Advantage: USA Rare Earth controls the Round Top Mountain in Texas, which contains 15 of the 17 rare-earth metals and significant lithium deposits, and if successful, this could greatly enhance U.S. self-sufficiency in the rare-earth supply chain.
- Government Investment Support: In early 2026, the Trump administration announced a $1.6 billion deal to acquire a 10% stake in USA Rare Earth, with funds allocated for developing the Round Top mine and a magnet manufacturing facility in Oklahoma, highlighting government commitment to the project.
- Market Competition Risks: Despite federal backing, USA Rare Earth faces high costs associated with building its mine and manufacturing arm, along with fierce competition from China, which remains the dominant global supplier of permanent magnets, adding uncertainty to the project.
- Cautious Investment Advice: While USA Rare Earth has long-term potential, analysts suggest conservative investors consider metal exchange-traded funds (ETFs) to mitigate risks and achieve more stable returns, given the numerous unknowns surrounding the company’s future cash flow.
See More
Nvidia Poised for Strong GPU Sales in China Again
- Massive Market Opportunity: Nvidia has negotiated a deal with the U.S. government to resume GPU sales to China, with CEO Jensen Huang estimating the Chinese market could generate up to $50 billion annually, significantly boosting the company's performance.
- Sales Recovery Expectations: Before the ban, Nvidia projected $8 billion in sales from China for Q2 FY 2025; if sales return to similar levels, GPU sales could exceed $30 billion, presenting substantial growth potential.
- Revenue Growth Forecast: Wall Street anticipates Nvidia's revenue will reach $326 billion for FY 2027, but given the surge in AI computing spending, actual revenue could hit $350 billion, further enhancing market confidence.
- Strong Profitability: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, it could generate $196 billion in profits, and with a reasonable 40x earnings valuation, the stock price could rise to $322, indicating a compelling investment opportunity.
See More
Nvidia's 2026 Potential Looks Promising
- Chinese Market Opportunity: Nvidia anticipates that GPU sales to China could boost its annual revenue by up to $50 billion, with previous sales at $8 billion; if restored, this would significantly enhance company performance and market competitiveness.
- Revenue Forecast Upgrade: Wall Street expects Nvidia's FY 2027 revenue to be $326 billion, but given the surge in AI computing demand and new technology releases, actual revenue could exceed $350 billion, further solidifying its market leadership.
- Stock Price Surpassing $300: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, profits could reach $196 billion, suggesting a stock price of $322 based on reasonable valuation metrics, indicating strong investment potential.
- Optimistic Investment Outlook: Based on these projections, Nvidia is poised to be one of the best-performing stocks in 2026, attracting investor interest and driving stock price appreciation.
See More
Nvidia's Stock Predictions for 2026
- Chinese Market Opportunity: Nvidia's potential return of GPU sales to China could boost annual revenue by up to $50 billion, with CEO Jensen Huang estimating that sales could exceed $30 billion if they return to previous levels, significantly enhancing company performance and driving stock price appreciation.
- Revenue Forecast Upgrade: Wall Street's average revenue expectation for Nvidia in FY 2027 is $326 billion, but given the surge in AI computing demand and new technology releases, actual revenue could surpass $350 billion, further solidifying Nvidia's market leadership.
- Stock Price Surpassing $300: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, projected profits would reach $196 billion, suggesting a stock price of $322 based on a 40x earnings multiple, indicating strong investment appeal.
- Investor Attention: Despite being excluded from Motley Fool's top stock recommendations, Nvidia's potential market performance and growth outlook continue to attract significant investor interest, reflecting a positive market sentiment towards its future.
See More
Amazon and Alphabet's AI Spending Plans for 2026 Shock Investors
- Massive Capital Expenditures: Alphabet announced a capital expenditure plan of $175 billion to $185 billion for 2026, while Amazon plans to spend about $200 billion, which will significantly pressure their free cash flow, potentially bringing Amazon's close to zero or negative.
- Cash Flow Status: Alphabet generated $165 billion in operating cash flow in 2025 and is expected to maintain positive free cash flow despite increased spending, whereas Amazon's operating cash flow of $140 billion is not growing as fast, risking negative cash flow.
- Backlog Growth: Alphabet's backlog reached $240 billion, up 55% sequentially, indicating strong demand for AI products; Amazon's backlog also grew by 22% to $244 billion, reflecting robust market demand in the cloud computing sector for both companies.
- Market Reaction: Despite the significant investment potential in AI, the market reacted negatively to both companies' spending plans, leading to stock price declines, which may present buying opportunities for long-term investors considering their strong competitive positions in high-return areas.
See More
Tech Giants Mask Underlying Market Risks
- Market Risk Concerns: While tech giants like Apple, Google, Amazon, Meta, and Nvidia demonstrate some market resilience, the overall market remains highly dangerous, prompting investors to stay vigilant against potential volatility.
- Financial Performance Analysis: These companies report strong revenue growth in their financial statements; however, market uncertainties could impact future profitability, necessitating investor attention to shifts in macroeconomic indicators.
- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
- Industry Outlook: Although the performance of tech giants may mask underlying market issues, the long-term growth of the sector still relies on innovation and the stability of market demand.
See More
USA Rare Earth Aims to Revolutionize Magnet Manufacturing
- Rare Earth Resource Advantage: USA Rare Earth controls the Round Top Mountain in Texas, which contains 15 of the 17 rare-earth metals and significant lithium deposits, and if successful, this could greatly enhance U.S. self-sufficiency in the rare-earth supply chain.
- Government Investment Support: In early 2026, the Trump administration announced a $1.6 billion deal to acquire a 10% stake in USA Rare Earth, with funds allocated for developing the Round Top mine and a magnet manufacturing facility in Oklahoma, highlighting government commitment to the project.
- Market Competition Risks: Despite federal backing, USA Rare Earth faces high costs associated with building its mine and manufacturing arm, along with fierce competition from China, which remains the dominant global supplier of permanent magnets, adding uncertainty to the project.
- Cautious Investment Advice: While USA Rare Earth has long-term potential, analysts suggest conservative investors consider metal exchange-traded funds (ETFs) to mitigate risks and achieve more stable returns, given the numerous unknowns surrounding the company’s future cash flow.
See More
