Nvidia Stock Jumps: Here’s What DBS Predicts Next

Nvidia (NASDAQ:NVDA) stock has faced several challenges this year that have weighed on its trajectory. From the threat of tariffs to looming restrictions on AI chip exports to China, geopolitical risks have cast a shadow over its global ambitions. As a result, the stock has struggled to build momentum in 2025 – a rare occurrence for this AI high-flyer.

However, one prospective overhang was removed last Wednesday. The Trump administration intends to revoke the AI diffusion rule introduced by the previous Biden administration. This rule, designed to address national security concerns surrounding the export of advanced AI chips, featured a three-tiered framework that eased exports to trusted allies while tightening controls on countries deemed risky. Nvidia’s top brass had opposed the rule, arguing it would hamper revenue growth and hurt global competitiveness.

The rollback is likely music to CEO Jensen Huang’s ears – and the market seemed to agree. Nvidia shares have surged nearly 7% since the news, including a 4.5% jump today.

However, according to DBS analyst Fang Boon Foo, while scrapping the rule removes one overhang, a bigger near-term concern may lie ahead.

“While the withdrawal of the AI diffusion rule marks a victory for Nvidia, we think the bigger near-term uncertainty lies in the upcoming sector-specific tariff policies,” the analyst said.

Nevertheless, setting aside trade-related concerns, and homing in on execution only, Fang believes Nvidia’s prospects “remain largely intact for now.”

The Street continues to forecast solid revenue and earnings growth over the next 12 months – 54% and 47%, respectively – driven by ongoing AI capital expenditures from hyperscalers, which were reaffirmed in their most recent Q1 FY25 results.

Fang will also be closely watching the following key data points in the company’s upcoming 1QFY26 results, slated for release on 28 May: “1) steps to serve the Chinese markets after the latest H20 export restrictions, 2) progress of Blackwell ramp…”

All told, Fang rates NVDA shares a Buy, while his $160 price target implies the stock will gain 31% in the months ahead. (To watch Fang’s track record, click here)

Among Fang’s colleagues, positive NVDA reviews are par for the course; based on a mix of 34 Buys vs. 5 Holds and 1 Sell, the analyst consensus rates the stock a Strong Buy. At $164.35, the average price target factors in a one-year gain of 35%. (See NVDA stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.