The escalation of President Donald Trump’s tariff war has driven shares of several companies across multiple sectors lower in 2025. After surging to all-time highs in 2024, Nvidia (NVDA) stock is down 30% below record levels, valuing the chip maker at a market cap of $2.64 trillion.
Wall Street is holding its breath as April 2 approaches – dubbed “Liberation Day” by Trump – when his administration will announce new tariffs on imported goods. Last week, the market got a preview when 25% tariffs on overseas-manufactured cars and auto parts sent General Motors (GM) and Ford (F) tumbling.
News reports suggest the Trump administration is considering 20% “reciprocal” tariffs across the board – a scenario not currently reflected in the S&P 500 Index’s ($SPX) 5% year-to-date decline.
A MarketWatch report stated that earnings estimates for 2025 have already fallen from $272 to $268. However, higher tariffs would raise costs, squeeze margins, and could trigger an economic slowdown, driving valuations even lower.
Few sectors offer a safe harbor for investors. For instance, the energy sector has gained nearly 8%, but represents a small market segment. Comparatively, consumer discretionary and technology stocks, home to market giants like Amazon (AMZN), Tesla (TSLA), Apple (AAPL), and Nvidia (NVDA), have dropped over 10%.
MarketWatch explained that some analysts anticipate a “sell the rumor, buy the news” rally following the April 2 announcement, while others warn that the current stagflationary backdrop creates dangerous conditions for equities.
So, let’s see if you should buy the dip in Nvidia stock after Trump’s Liberation Day.
Nvidia Continues to Expand
Nvidia CEO Jensen Huang unveiled ambitious AI infrastructure plans at the company’s annual GTC event. Huang highlighted the production launch of Nvidia’s Blackwell chips and provided a roadmap of future chip generations amid surging demand for AI computing power.
According to Huang, Blackwell delivers 25x-40x performance improvements over the previous Hopper architecture for AI workloads. The CEO also previewed two future generations: Vera Rubin, coming in late 2026, and Rubin Ultra, in 2027, which promises 15 exaflops of computing power per rack.
Nvidia also announced a silicon photonics initiative to enable scaling to millions of GPUs in data centers, which Huang says could save “tens of megawatts” of power compared to traditional networking approaches.
Nvidia continues expanding beyond cloud computing with enterprise-focused offerings, including the DGX Station, a 20-petaflops PC for data scientists, and partnerships with major companies like GM for self-driving car development.
With substantial investments in robotics technologies, Huang positioned Nvidia as addressing the projected global shortage of 50 million workers by decade’s end, saying robotics “could very well likely be the largest industry of all.”
What Is the Target Price for NVDA Stock?
The tariff war may drive multiples of Nvidia and other growth stocks lower over the next 12 months. However, the semiconductor giant continues to grow steadily, given that adjusted earnings per share are forecast to touch $7.02 per share in fiscal 2030 (ending in January), up from $2.99 per share in fiscal 2025.
Over the next five years, analysts expect Nvidia to grow its revenue by 18.9% annually. In this period, its free cash flow is forecast to increase at a compound annual growth rate of 26%. Nvidia’s free cash flow is expected to increase to $193 billion in fiscal 2030, up from $60.7 billion in 2025.
If NVDA stock is priced at 30x trailing FCF, it should more than double over the next five years and deliver outsized gains to shareholders. Out of the 44 analysts covering NVDA stock, 38 recommend “Strong Buy,” two recommend “Moderate Buy,” and four recommend “Hold.” The average target price for NVDA stock is $177.19, indicating an upside potential of over 65% from current levels.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.