After delivering market-thumping gains to shareholders over the past decade, Nvidia (NVDA) stock is down over 35% from all-time highs in 2025. In recent months, the chipmaker has struggled with trade war escalations, lofty valuation multiples, and slowing revenue growth.
According to a Reuters report, Nvidia CEO Jensen Huang made a high-profile visit to Beijing last week following the U.S. government’s ban on sales of the company’s H20 artificial intelligence chips to China.
During meetings with Chinese officials, including Vice Premier He Lifeng and the head of the China Council for the Promotion of International Trade, Huang emphasized China’s importance to Nvidia’s business, stating the company would spare no effort to build compliant products and serve the Chinese market.
The visit comes at a critical moment for the chip giant. The export restriction on H20 chips — specifically designed to comply with previous U.S. regulations — has triggered a projected $5.5 billion revenue hit and contributed to a nearly 7% drop in Nvidia’s stock price.
Adding to the pressure, the House Select Committee on the Chinese Communist Party has launched an investigation into whether Nvidia violated export rules, particularly regarding sales to Chinese AI startup DeepSeek.
China represents a crucial market for Nvidia, accounting for approximately $17 billion in revenue last year, over 19% of its total. The tech giant faces significant challenges balancing regulatory compliance with its global expansion strategy as tensions between the U.S. and China escalate.
Is Nvidia Stock a Good Buy In April 2025?
During an investor meeting last month, Huang outlined a three-pronged strategy for its AI business. Moreover, Huang emphasized that demand for its AI chips remains robust despite recent market concerns.
Huang identified three key focus areas for Nvidia’s AI business: cloud data centers, enterprise IT, and robotics systems. The CEO explained that Nvidia is now an infrastructure-building company with a responsibility to provide clear roadmaps to partners making substantial investments.
Huang dismissed concerns about Chinese AI lab DeepSeek’s claims of achieving similar results with less powerful hardware, explaining it was simply a matter of “distillation” technology, where smaller models are derived from larger ones.
When asked about competition from custom ASICs developed by cloud providers, Huang was dismissive: “First of all, just because something gets built doesn’t mean it’s great.” He highlighted Nvidia’s technological lead, noting “everybody is still trying to catch up to Hopper” while Nvidia is already delivering Blackwell, which is “40x more” powerful.
Looking ahead, Huang revealed significant demand for Blackwell GPUs, with cloud service providers having already ordered 3.6 million units. He also predicted that inference processing would eventually consume 90% of AI computing capacity, with only 10% needed for training new models.
What Is the Target Price for NVDA Stock?
Despite its massive size, Nvidia has grown its revenue at an annual rate of 69% in the last three years, while earnings growth was higher at 89%. In the next three years, Wall Street estimates earnings and revenue growth at 30.2% and 29.7%, respectively. It shows that while Nvidia enjoyed a first-mover advantage in AI chips, rising competition from peers such as Advanced Micro Devices (AMD) and Intel (INTC) is likely to weigh on profit margins.
In April 2025, NVDA stock trades at a forward price-earnings multiple of 22.8x, which is lower than its three-year average of 31.5x. Out of the 43 analysts tracking NVDA stock, 37 recommend “Strong Buy,” two recommend “Moderate Buy,” and four recommend “Hold.” The average target price for Nvidia stock is $171.35, indicating upside potential of over 70% from current levels.
