Nvidia (NASDAQ:NVDA) stock hasn’t been spared from the market’s recent turbulence, despite its strong performance. Shares have slid 19% in early 2025, even as the AI chipmaker once again exceeded revenue and earnings expectations – and raised guidance – in its latest quarterly report last month.
Of course, factors beyond broader market worries over an impending trade war are also at play, including specific concerns that are weighing on Nvidia and its semiconductor peers. These include fears that the DeepSeek model could slow AI capex investments, as well as the possibility of the Trump administration imposing even stricter restrictions on chip exports to China.
However, one top investor, known by the pseudonym JR Research, believes that the current headwinds facing NVDA are diverting attention from the company’s strong long-term prospects.
“Nvidia has several stellar growth drivers that may not have been captured in the current outlook,” asserts the 5-star investor, who is among the top 3% of TipRanks’ stock pros.
JR foresees little reason to fear a DeepSeek disruption for Nvidia, as the cheaper costs of these models are likely to accelerate AI adoption. The investor also predicts that most companies – even hyperscalers – will continue to rely heavily up Nvidia’s chips as AI technology advances.
“The need to level up AI compute rapidly as reasoning capabilities and models become increasingly pivotal will likely underpin the demand for Nvidia’s solutions, even as big tech continues its innovation in custom chips designs,” JR explains.
While the world-beating growth experienced over the past few years may begin to level out through FY 2027, there could be massive gains up ahead with physical AI, adds JR, though these could take some time to transpire.
For now, the message is clear: “Hang on tight.” JR sees no compelling reason to take profits, especially with potential “upside surprises” looming as Nvidia gears up for its highly anticipated Blackwell ramp in the second half of the year.
“I strongly encourage investors to consider taking advantage of the recent pullback in NVDA stock to add more positions to their portfolio before it resumes its uptrend momentum,” concludes JR, rating NVDA shares a Buy. (To watch JR Research’s track record, click here)
There are not too many naysayers on Wall Street, either. With 39 Buy and 3 Hold recommendations, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $177.41 implies ~66% upside potential for the coming year. (See NVDA stock forecast)
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