TLDR
- Jensen Huang says he believes China’s market will “open over time” for U.S. chip suppliers, but Trump’s trip to Beijing produced no immediate breakthrough for Nvidia’s H200 chip sales.
- Nvidia opened at $222.32 on Tuesday, down 1.3%, with a 52-week range of $129.16 to $236.54 and a market cap of $5.38 trillion.
- Multiple Wall Street analysts have raised price targets ahead of earnings, with Wells Fargo setting a $315 target and a consensus average of $278.73.
- Institutional investors own 65.27% of the stock, with hedge funds including Tiger Global, Bridgewater, and Soros Fund Management recently adding to positions.
- Analysts broadly expect a “beat-and-raise” quarter, but warn that high expectations and the options market signaling volatility could hurt the stock if guidance disappoints.
Nvidia opened at $222.32 on Tuesday, down 1.3%, as the chipmaker heads into its earnings report with Wall Street watching closely.
The stock has a 52-week range of $129.16 to $236.54. Its market cap sits at $5.38 trillion, making it one of the most valuable companies on the planet.
Analysts broadly expect another strong quarter. The word on the Street is a “beat-and-raise” outcome, driven by continued demand for AI data center hardware.
Nvidia last reported earnings on February 25, posting EPS of $1.62, beating the $1.54 consensus by $0.08. Revenue came in at $68.13 billion, topping estimates of $65.56 billion and up 73.2% year over year.
For the current fiscal year, analysts expect EPS of $7.84.
China Remains a Sticking Point
CEO Jensen Huang traveled to China last week alongside President Donald Trump. The visit raised hopes that trade talks might open the door for Nvidia to sell its H200 chips in the country.
Those hopes haven’t materialized yet. Trump’s meetings with President Xi Jinping produced no immediate deal, and Chinese regulators have not approved H200 sales as they continue to back domestic chip suppliers.
Huang struck an optimistic tone regardless, telling Bloomberg Television: “My sense is that over time, the market will open.”
Nvidia holds U.S. government licenses to sell the H200 in China, but that means little without Chinese approval on the other side.
Analysts Raise Targets Ahead of Earnings
Wall Street has been broadly bullish heading into the print. Wells Fargo kept its “overweight” rating and raised its target to $315. Robert W. Baird lifted its target to $300. KeyBanc, DA Davidson, Morgan Stanley, and Wedbush also raised targets, citing Blackwell momentum and the upcoming Rubin platform.
The consensus rating across analysts is “Buy,” with an average price target of $278.73. Four analysts rate it a Strong Buy, 48 have a Buy, and just two say Hold.
Institutional ownership stands at 65.27%. Diversified Enterprises lifted its stake by 44.2% in Q4. Hedge funds Tiger Global, Bridgewater, Soros Fund Management, and D1 Capital all added to positions in recent filings.
Not everyone is at ease, though. Some analysts point to stretched valuations and warn that the options market is pricing in elevated volatility around the earnings release. Any miss or cautious guidance could hit the stock hard given how high expectations are sitting.
On the insider side, Director Aarti S. Shah sold $3.36 million worth of stock in March, and CFO Colette Kress sold $3.5 million. Over the past 90 days, insiders have sold over $162 million in stock.
Nvidia trades at a PE of 45.37 and a PEG of 0.70. Its 50-day moving average sits at $193.14 and its 200-day at $188.51.
The quarterly dividend paid on April 1 was $0.01 per share, with an annualized yield of 0.0%.
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