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Artificial intelligence (AI) darling Nvidia (NVDA) has always dominated headlines for one reason or another, consistently drawing investor attention. The company’s meteoric rise over the years has come to symbolize the broader AI boom. But in 2025, the chip giant’s red-hot rally is showing signs of fatigue due to a number of factors. Mounting U.S.-China trade tensions, tariff wars, growing skepticism around the pace of AI investment, and a new wave of rival chips have cast a shadow over the stock’s once-unshakable momentum.
Still, that hasn’t deterred New York-based hedge fund Tiger Global Management. According to the firm’s latest 13-F filing, the Chase Coleman-led hedge fund made a bold move, boosting its Nvidia stake by about 1.28 million shares, a 13% increase, bringing its total to nearly 11 million shares. At the same time, the fund completely exited its position in chip players like Qualcomm (QCOM) and Arm Holdings (ARM), a notable shift that underscores where its conviction lies in the current semiconductor landscape.
In a market filled with uncertainty, Tiger Global’s move stands as a strong vote of confidence in Nvidia’s resilience. So, should investors jump in as well?
About Nvidia Stock
California-based Nvidia (NVDA) has carved out a remarkable trajectory in the tech world. Known for its breakthroughs in AI and GPU technology, the company has left a lasting mark across industries, from gaming and data centers to autonomous vehicles and high-performance computing. Its chips now sit at the heart of many modern innovations, driving demand that’s helped cement its place as a central player in today’s digital era.
With a towering $3.2 trillion market cap, Nvidia ranks among the world’s most valuable companies. But the stock’s momentum has noticeably slowed in 2025. Despite its dominance, shares are down slightly this year, as market headwinds temper investor enthusiasm. Nevertheless, over the past year, shares of this chip maker are still up 40.1%, which easily surpasses the broader S&P 500 Index’s ($SPX) 10% return during the same stretch.
High-growth names like Nvidia often carry lofty valuations. And given the company’s AI king status, it's no surprise that the stock’s 33.46 times forward earnings and 25.18 times sales are higher than its sector medians. Yet on a positive note, these figures have certainly fallen from their historical levels. For perspective, the company’s five-year averages are 47.49 times forward earnings and 25.83 times sales, suggesting that while still elevated, the stock isn’t as stretched as it once was.
Nvidia’s Q4 Earnings Snapshot
On Feb. 26, Nvidia lifted the curtains on a blockbuster fiscal 2025 fourth quarter earnings report that blew past expectations. The AI giant posted record revenue of $39.3 billion, up a staggering 78% year-over-year and 3.1% above Wall Street forecasts. Earnings didn’t disappoint either, with adjusted EPS soaring 71% annually to $0.89, beating the consensus estimate of $0.85.
Nvidia’s grip on the data center market remains as strong as ever, with revenue surging a whopping 93% year over year to $35.6 billion, driven by booming demand for its H200 Hopper chip. Adding to the momentum, CEO Jensen Huang highlighted overwhelming interest in the company’s next-gen Blackwell chips, noting that large-scale production is already underway and racking up billions in sales within just the first quarter of launch.
Nvidia experienced a modest margin dip in the fourth quarter, with gross margins slipping to 73% from 76% a year earlier, an impact management linked to early costs from ramping up its Blackwell chip production. Looking ahead, the spotlight is on fiscal Q1 2026, with results set to drop after the market closes on May 28. Nvidia is forecasting revenue of $43 billion, give or take 2%, suggesting the growth engine is still running strong despite temporary margin headwinds.
With demand for Blackwell chips accelerating and production ramping up, Nvidia anticipates near-term pressure on margins, guiding for a GAAP gross margin of 70.6% and a non-GAAP margin of 71%, each with a 50-basis-point swing. Still, the long-term outlook remains strong. Analysts tracking Nvidia expect the company’s earnings to jump 39% year-over-year to $4.07 per share in fiscal 2026, followed by another 26.3% climb to $5.14 per share in fiscal 2027.
What Do Analysts Expect for Nvidia Stock?
As Nvidia gears up to reveal its Q1 earnings, Wall Street is echoing Tiger Global’s conviction, sticking to a consensus “Strong Buy” rating overall. Of the 44 analysts offering recommendations, 37 are giving it a solid “Strong Buy,” two suggest a “Moderate Buy,” four advocate “Hold,” and the remaining one gives a “Strong Sell.”
The average analyst price target of $166.22 indicates 24% potential upside from the current price levels. The Street-high price target of $220 suggests that NVDA could rally as much as 62.5% from here.
