‘Full Hit from China’: Analysts Stay Bullish on Nvidia Ahead of Earnings, But Tariffs Loom Large
Published: May 22, 2025 | By: InforNews Technology Desk
As Nvidia prepares to release its latest earnings report this week, Wall Street analysts remain largely bullish on the tech giant’s outlook — but escalating U.S.-China trade tensions and potential tariffs are casting a long shadow.
📈 Strong Performance Expected
Nvidia has consistently outperformed expectations in recent quarters, driven by its dominant position in AI chips, data centers, and graphics cards. Analysts predict another strong showing, with revenue expected to top $24 billion — a significant jump from the same quarter last year.
“The AI boom has made Nvidia the most important chipmaker in the world,” said Laura Simmons, a tech analyst at Morgan Fitch. “Its GPUs are the backbone of every major AI application today.”
💥 Trade Risks: 'Full Hit from China'
Despite its solid fundamentals, Nvidia faces potential headwinds from mounting trade tensions between the U.S. and China. Washington has tightened export controls on high-performance chips, directly affecting Nvidia's business with Chinese tech firms.
“If new tariffs or restrictions are imposed, Nvidia could take a full hit from China — one of its largest markets,” warned investment strategist Mark Dorsey.
Chinese sales accounted for over 20% of Nvidia’s data center revenue last year. Any disruption could weigh heavily on future guidance, even as demand for AI chips continues to surge globally.
💡 Analysts Remain Confident
Despite geopolitical uncertainty, most analysts have maintained or raised their price targets for Nvidia, citing:
- Robust demand for AI infrastructure
- Strong adoption in cloud services and enterprise computing
- Record-high gross margins and expanding product lines
Goldman Sachs reiterated its “Buy” rating with a target price of $1,300, citing Nvidia’s unmatched market share in AI-related hardware.
📊 Investor Sentiment
Investors are watching closely to see whether Nvidia’s guidance will reflect the potential tariff impact or whether the company will pivot more aggressively toward non-Chinese markets like India, Southeast Asia, and the Middle East.
“The next few quarters will test Nvidia’s agility,” said Sophie Tran, tech equities advisor at Falcon Capital. “How it navigates geopolitical risks while sustaining innovation will define its trajectory.”
🔮 What to Watch
- Earnings Date: May 23, 2025
- Expected EPS: $5.45
- Revenue Forecast: $24.1 billion
- Key Risk Factor: U.S.-China semiconductor export policies
📌 Conclusion
While geopolitical uncertainty lingers, Nvidia continues to shine as the leader of the AI revolution. Its earnings this week could reinforce investor confidence — or highlight the growing challenges of operating in a fractured global tech landscape.
📢 For more tech market insights, visit: www.infornews.co.za
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