TLDR
- Nvidia stock was up 1.6% to $215.65 after CEO Jensen Huang argued against AI regulation at a Salesforce conference
- Huang called AI safety “an engineering problem” and said market forces already handle it
- Meta’s Mark Zuckerberg backed the anti-regulation stance, saying AI labs already have incentives to train models safely
- The White House, including Treasury Secretary Scott Bessent and AI adviser David Sacks, praised Huang’s comments
- Analysts maintain an average “Buy” rating on NVDA with a consensus price target of $324.34
Nvidia stock climbed 1.6% to $215.65 on Wednesday after CEO Jensen Huang made a public stand against new AI regulations, drawing support from the White House and several big tech names.
Huang made the comments at a Salesforce conference in San Francisco on Tuesday. He argued that the AI industry does not need new laws to keep things in check.
“Safety is an engineering problem,” Huang said. “If you build a product or a service and you’re not confident in its functionality, capability, or safety, then don’t release it. The market forces are already there. We don’t need any new laws. We don’t need new regulations.”
The comments came after a rough start to the week for NVDA. Anthropic and OpenAI executives had spoken in favor of slowing AI development, raising fears that regulation could limit sales of Nvidia’s chips.
Meta’s Mark Zuckerberg added fuel to the anti-regulation camp. He posted on social media Tuesday that individual AI labs already have the incentives to train their models safely.
White House Backs Huang
The Trump administration quickly aligned with Huang’s position. Treasury Secretary Scott Bessent and White House AI adviser David Sacks both cited Huang’s comments approvingly.
President Trump had already called Huang on Monday during a summit appearance to publicly push back against calls for an AI slowdown. That kind of direct presidential support is not something most CEOs can count on.
The stakes are real for Nvidia. Any regulation limiting purchases of its AI processors for training new models would hit the company’s core business. A moratorium on new data center construction, a measure floated by Senator Bernie Sanders, would be a worst-case scenario.
Analysts Still Bullish
On the fundamentals, the picture looks solid. Nvidia reported revenue of $96.22 billion in its most recent quarter, up 105.9% year over year. Earnings per share came in at $2.22, beating the $2.09 analyst estimate by $0.13.
The stock opened at $227.38 on Tuesday, with a 12-month high of $236.54 and a low of $164.27. Its market cap sits at $5.48 trillion.
Institutional ownership remains high at 65.27%. Recent buyers include Bank of America, Amundi, and Dimensional Fund Advisors.
Analyst targets have been creeping up. Truist Financial lifted its price target to $346, KGI Securities raised theirs to $345, and the consensus sits at $324.34 with an average “Buy” rating across 55 analysts.
On the deal front, Nvidia reportedly agreed to acquire Hugging Face for approximately $12.9 billion, a move that would give it access to a large ecosystem of AI models and developers.
One area worth watching: insiders sold approximately $392.7 million worth of stock over the past 90 days, including a $144 million sale by director Mark Stevens in early September.
Nvidia also declared a quarterly dividend of $0.25 per share, payable October 1st, with a yield of 0.4%.
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