When it comes to Nvidia stock analysis, investors often look for signals beyond headline earnings. In its fiscal 2026 second quarter, Nvidia (NASDAQ:NVDA) exceeded Wall Street expectations, reporting revenue of $46.74 billion—up 55.6% year-over-year. Adjusted earnings per share (EPS) came in at $1.05, topping consensus estimates of $1.01.

Data center sales, Nvidia’s largest revenue driver, surged 56.4% to $41.1 billion. Although just below the $41.34 billion forecast, this growth underscores the company’s critical role in powering artificial intelligence (AI) applications. The gaming segment also contributed $4.3 billion, up 48.9% from the prior year, reflecting the ongoing demand for high-performance GPUs.

Nvidia’s robotics division, though smaller in scale, climbed 69% to $586 million in revenue. This illustrates management’s commitment to diversifying its growth avenues. Overall, adjusted net income rose 52.1% to $25.8 billion, highlighting the company’s ability to sustain profitability despite geopolitical pressures.

Trade Tensions and the China Factor

No Nvidia stock analysis would be complete without considering U.S.-China trade dynamics. Earlier this year, Nvidia faced restrictions on chip sales to China, including the H20 model. The company agreed to remit 15% of H20 chip sales revenue in China to the U.S. government, signaling ongoing compliance risks.

Despite these challenges, Nvidia managed to generate $180 million by releasing H20 inventory to customers outside China. CFO Colette Kress suggested that if political conditions ease, H20 sales could contribute $2 billion to $5 billion in the third quarter alone. However, geopolitical uncertainty remains a significant wildcard that could affect investor confidence.

Valuation and Market Performance

From a valuation perspective, Nvidia stock analysis reveals a company trading at 38.12 times forward earnings. While this is higher than the industry average, it is below Nvidia’s five-year historical range, suggesting a relatively attractive entry point.

Over the past 52 weeks, shares of NVDA have surged 56.6%, with year-to-date gains of 26%. The stock recently hit a new 52-week high of $184.48 but has since declined about 7% in the past five trading sessions. This pullback may present an opportunity for long-term investors who believe in Nvidia’s growth trajectory.

Analyst Ratings and Price Targets

Analyst sentiment is overwhelmingly bullish, reinforcing positive Nvidia stock analysis. Following the Q2 results, several firms raised their price targets:

• Morgan Stanley’s Joseph Moore increased his target from $206 to $210.

• J.P. Morgan’s Harlan Sur lifted his target from $170 to $215.

• KeyBanc’s John Vinh boosted his target from $215 to $230 with an “Overweight” rating.

• Wolfe Research also moved its target from $220 to $230, maintaining an “Outperform” stance.

Out of 46 analysts, 38 recommend a “Strong Buy,” two suggest a “Moderate Buy,” five call for “Hold,” and only one advises a “Strong Sell.” The average price target of $210.49 represents a potential 23% upside, while the highest estimate of $250 signals a possible 46% gain.

Is Nvidia a Buy Below $175?

Based on this Nvidia stock analysis, the answer leans toward yes—if investors are prepared for short-term volatility. The company’s leadership in AI, gaming, and data centers makes it a cornerstone of the semiconductor sector. With analysts projecting fiscal 2027 earnings growth of 35.9%, Nvidia’s long-term outlook appears strong.

However, risks tied to trade restrictions and political uncertainty should not be overlooked. Investors considering an entry point below $175 could benefit from potential upside, but should also be ready for swings in the near term.

For investors focused on the long game, Nvidia stock remains a compelling opportunity. Its dominant role in AI infrastructure, expanding product lines, and consistent analyst support all suggest further upside. While volatility may persist due to global trade policies, the company’s fundamentals remain robust, making Nvidia stock a strong candidate for growth portfolios.

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