TLDR
- President Trump backed self-regulation for AI at a White House lunch on Tuesday, a win for Nvidia CEO Jensen Huang.
- No mention was made of limiting data-center construction or chip supply, a key positive for Nvidia’s business model.
- Nvidia stock rose 0.7% in premarket trading Wednesday following the meeting.
- Rosenblatt Securities reiterated a Buy rating with a $390 price target, implying upside from the $227.21 closing price.
- Nvidia posted quarterly EPS of $2.22 versus a $2.09 estimate, with revenue up 105.9% year over year.
Nvidia stock climbed 0.7% in premarket trading Wednesday after a White House meeting went the chip maker’s way. President Donald Trump backed self-regulation for artificial intelligence during a lunch with tech executives on Tuesday.
Nvidia CEO Jensen Huang was among those in attendance. He has long argued the AI industry should police itself rather than face heavy government rules.
Anthropic CEO Dario Amodei was also there. He has pushed for stricter oversight of AI, setting up a clear divide at the table.
Trump settled the debate quickly. He told the group that “self regulation is very important.”
He also called Huang “a handsome guy” while standing next to him. It was a lighthearted moment in an otherwise high-stakes meeting.
The CEOs signed a statement promising to keep AI technology safe. It included voluntary steps like internal monitoring and outside reviews of AI models.
What This Means for Nvidia’s Business
There was no talk of limiting data-center construction. There was also no mention of restricting chip supply for training AI models.
That matters a lot for Nvidia. The company’s strategy relies on millions of developers using its hardware, a push helped along by its purchase of Hugging Face.
Joe Tigay of the Rational Equity Armor Fund explained the setup. He said Nvidia benefits either way, whether OpenAI and Anthropic dominate or the AI world splits into thousands of smaller models.
Hugging Face gives Nvidia a foothold in that fragmented scenario too. It’s a hedge against betting on just one or two winners.
Analyst Ratings and Recent Earnings
Rosenblatt Securities reiterated a Buy rating on Tuesday. The firm set a $390 price target, implying upside of roughly 72% from the $227.21 share price.
The broader Wall Street view is also positive. The average analyst target sits at $324.14, with four Strong Buy ratings, fifty Buy ratings and one Hold.
Not every recent move has been upward. Wall Street Zen downgraded Nvidia from Strong Buy to Buy last Saturday.
Nvidia’s most recent earnings, reported August 26, beat expectations. EPS came in at $2.22 against a $2.09 estimate, and revenue hit $96.22 billion versus the $92.27 billion forecast.
That revenue figure was up 105.9% from the same quarter last year. Return on equity stood at 96.04%.
On Monday, Nvidia’s board authorized a new $150 billion stock buyback. That brings total remaining buyback authorization to about $235 billion through fiscal 2028.
Insiders have been selling stock recently. Over the past 90 days, insiders sold about $399.5 million worth of shares, including a sale by Director Mark A. Stevens on September 4 at an average price of $231.62.
Institutional investors continue to hold the bulk of the company. They own 65.27% of outstanding stock, with several large funds adding to positions in the second quarter.
Nvidia’s stock has a 12-month low of $164.27 and a high of $236.54. Its market capitalization stands at $5.48 trillion.
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