Nvidia ( (NVDA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Nvidia (NASDAQ:NVDA) has experienced a significant turnaround in its stock performance, recovering from a dip caused by U.S. export restrictions to China. The easing of trade tensions has allowed Nvidia’s stock to soar by over 80% since April, propelling it to the top of the market cap leaderboard as the world’s most valuable company. Despite initial setbacks, Nvidia’s strong fundamentals, including a record $25.8 billion in free cash flow and a 70% year-over-year increase in Data Center revenue, have kept the company on a solid growth trajectory. The company is expected to resume shipments to China soon, with a new GPU designed to comply with export rules nearing mass production, which could further boost growth.
Investor sentiment is cautiously optimistic, with top investor Henrik Alex upgrading Nvidia’s shares from Sell to Hold, acknowledging the company’s robust performance despite previous export restrictions. However, Nvidia’s high valuation remains a concern, as the stock trades at over 20 times projected fiscal 2026 revenues. Nonetheless, Wall Street analysts are largely bullish, with 34 out of 38 analysts rating NVDA a Buy. As AI investment continues to grow and China shipments are set to resume, Nvidia’s fundamentals appear strong, although some investors remain wary of the ambitious valuation and overheated stock market.