Shares of Nvidia (NASDAQ:NVDA) have faced some downward pressure this week, as investors remain concerned about ongoing trade tensions. While President Donald Trump’s proposed tariffs, effective on April 2, may not initially target Taiwan—where Nvidia’s advanced chips are manufactured—comments about future tariffs on semiconductors have created a sense of uncertainty in the market. These developments could potentially affect Nvidia’s business and other semiconductor companies, including Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO).

Despite the tariff concerns, Nvidia has also made headlines with some positive news. Loop Capital recently reported that Apple (NASDAQ:AAPL) has placed an order worth approximately $1 billion for Nvidia’s GB300 NVL72 systems. This order includes 250 servers, priced between $3.7 million and $4 million each, signaling continued robust demand for Nvidia’s cutting-edge AI hardware, even amid potential trade headwinds.

Nvidia Stock Performance Amid Tariff Uncertainty

Nvidia, with a market cap approaching $2.8 trillion, has delivered remarkable returns to long-term investors. Over the past decade, the stock has surged more than 21,000%, adjusted for dividends. However, despite these gains, the stock is currently down nearly 27% from its all-time highs. This dip has led some investors to wonder if it’s a good time to buy Nvidia stock at these lower levels.

CEO Jensen Huang has made it clear that Nvidia is poised for continued growth. The company is investing heavily in emerging industries such as cloud data centers, enterprise IT, and robotics systems. Huang recently explained during the Nvidia GTC event that computing has shifted from general-purpose computing to GPU-accelerated computing, driven by the growing demand for AI. Nvidia is well-positioned to capitalize on this trend, with Blackwell GPU orders reaching 3.6 million units from top cloud service providers in early 2025.

Nvidia’s Strategic Innovations

Nvidia continues to innovate, with its Blackwell chip already in full production and the Blackwell Ultra chip set for launch in the second half of 2025. These advancements are part of a broader roadmap to release annual product updates that significantly improve performance. Nvidia is also focused on tackling power efficiency challenges. Innovations like the NVIDIA Dynamo operating system for AI factories and MicroRing Resonator Modulator technology for silicon photonics will help reduce energy consumption, turning power savings into additional computing capacity.

In addition to these technological strides, Nvidia has formed strategic alliances with key players across various industries. This includes partnerships with General Motors (NYSE:GM) for autonomous vehicle development and collaborations with companies like T-Mobile (NASDAQ:TMUS), Cisco (NASDAQ:CSCO), and Cerberus to build AI-enabled radio networks.

What Does the Future Hold for Nvidia Stock?

Nvidia’s growth story is far from over. The company is betting on AI factories and other specialized facilities to become massive growth drivers. As AI continues to evolve, Nvidia aims to be at the forefront of what CEO Jensen Huang calls a fundamental technological shift. The company’s growth prospects are also reflected in analysts’ expectations, which project Nvidia’s sales to reach $310.19 billion in fiscal year 2030, up from $130.5 billion in fiscal year 2025. Earnings per share are expected to rise from $2.99 in 2025 to $7 in 2030.

Out of the 44 analysts covering Nvidia, 38 recommend a “Strong Buy,” two recommend a “Moderate Buy,” and four recommend a “Hold.” The average target price for Nvidia stock is $177.19, suggesting a potential upside of over 50% from its current price.

Conclusion: Should You Buy Nvidia Stock Now?

Nvidia remains a dominant player in the semiconductor and AI industries, and despite some short-term challenges, the long-term outlook for the company appears promising. Investors who are willing to ride out the current volatility might find Nvidia stock to be a strong buy, especially with analysts’ high ratings and growth projections for the next decade. However, as with any investment, potential buyers should consider their risk tolerance and stay informed about the evolving trade landscape before making a decision.

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