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Nvidia stock (NVDA) jumped during Monday's session, bolstered by Wall Street analysts hiking their price targets on the stock. The company's shares were rising following two days of losses. The artificial intelligence chip designer last week became the first company to reach $5 trillion in market capitalization. Is Nvidia stock a buy or sell now? On Monday, Loop Capital increased its price target to 350 from 250 while keeping its buy rating. Nvidia appears on course to double its shipments of graphics processing units in the next 12 to 15 months, analyst Ananda Baruah said. Meanwhile, Rosenblatt Securities raised its price target to 240 from 215 and reiterated its buy rating ahead of Nvidia's third-quarter earnings report on Nov. 19. Last week, Goldman Sachs increased its price target to 240 from 210 and maintained its buy rating. Also last week, some Magnificent Seven companies updated investors on their plans to raise their capital spending on AI technology. Amazon (AMZN) delivered robust quarterly earnings and said its capex would reach $125 billion this year and increase in 2026. Amazon has "a very deep relationship with Nvidia," Amazon Chief Executive Andy Jassy said on Thursday's earnings call, according to a transcript. "We have for a very long time. We will for as long as I can foresee the future," he said. "We buy a lot of Nvidia." Meta projected "notably larger" capital expenditures in 2026, and Microsoft (MSFT) forecast higher capex growth in fiscal 2026 vs. a year ago. Microsoft surpassed quarterly spending targets for its AI infrastructure to meet strong demand for its services. AI spending plans grew bigger at Alphabet (GOOGL), as well. Meanwhile, President Donald Trump and Chinese President Xi Jinping, last week in South Korea, did not address the export ban on advanced AI chips that Nvidia designs. However, Trump said he told Xi that Beijing could negotiate with Nvidia directly and that the U.S. would be willing to serve as the arbitrator or referee, Reuters reported. Nvidia Chief Executive Jensen Huang has previously said Nvidia needs $50 billion in China chip sales to fund its research and development in the U.S. Taiwan Semi Delivers Earnings Beat Nvidia stock recently got a boost after its chip manufacturer, Taiwan Semiconductor (TSM), beat analysts' views for its third quarter. Also, midpoint sales guidance for the current quarter of $32.8 billion exceeded Wall Street's $31.55 billion target. Taiwan Semi's report arrived a day after an AI consortium led by BlackRock (BLK) said it is buying Aligned Data Centers in a deal worth around $40 billion. Nvidia and Microsoft (MSFT) are among the founders of the Artificial Intelligence Infrastructure Partnership. The deal adds to the reasons the market's AI trade has strengthened recently. Last month, Nvidia said it was investing $100 billion in ChatGPT creator OpenAI. Oppenheimer analysts said Nvidia was one of their top picks. They have an outperform rating and $225 price target for Nvidia stock. In addition to Huang's upbeat view on demand for Nvidia chips, he confirmed in his recent CNBC interview that Nvidia is participating in billionaire Elon Musk's xAI artificial intelligence venture. Nvidia Stock: OpenAI Partnership Under the OpenAI/Nvidia partnership announced in September, OpenAI will deploy at least 10 gigawatts of AI data centers running Nvidia processors. But the deal could raise antitrust concerns, Andre Barlow, an antitrust lawyer with Doyle, Barlow & Mazard, said, according to a recent Reuters report, indicating the partnership may capture the Department of Justice's attention. Meanwhile, Evercore ISI raised its Nvidia sales estimates by $5.5 billion in the second half of 2026 and boosted its price target to 225 from 214. Bank of America analysts see the OpenAI investment returning three to five times the initial investment. Stacy Rasgon at Bernstein raised "circular concerns" with Nvidia investing in startups that then go on to buy its graphics processing units. But the analyst noted that demand remained healthy. China's Chip Scrutiny Nvidia shares in mid-September fell after The Financial Times reported that China's Cyberspace Administration ordered major tech companies to stop buying artificial intelligence chips made by Nvidia. Meanwhile, China's State Administration for Market Regulation was reported to be investigating whether Nvidia breached the country's antitrust rules by acquiring Mellanox Technology in 2020. Nvidia said it had received approval "from all necessary authorities" to move forward with its planned acquisition of the network technology group. The Information reported that Nvidia had ordered component makers of its China chip to stop production. This comes after the Cyberspace Administration of China had asked Nvidia in July to explain if its chips could be tracked or shut down remotely. Huang said the chips do not have such capabilities. Separately, the AI giant may also be working on a new chip for China that may be more powerful than the H20, Reuters reported. Nvidia Stock: Second-Quarter Results The company in late August reported fiscal second-quarter earnings of $1.05 per share, topping the estimate of $1.01 per share. Sales of $46.74 billion beat views of $46.05 billion. Nvidia reported zero sales from its China H20 chip. It did not include H20 sales to China in its fiscal third-quarter revenue outlook of $54 billion. Wall Street was expecting $53.43 billion. The company also announced a $60 billion stock buyback. Are These Magnificent Seven Stocks A Buy Now? Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla Nvidia's China Revenue Deal In August, Nvidia struck a deal that secured a license to sell its H20 AI chips in China. However, in exchange, the company will give 15% of its revenue from chip sales in China to the U.S. government. Nvidia's revenue deal could invite scrutiny, according to Doug Jacobson, an international trade attorney at Jacobson Burton Kelley, Barron's reported. "We're far beyond uncharted waters. We're in an uncharted universe," Jacobson said. He noted the State Department is able to charge export-license fees related to defense technology, but the fees are not based on earned revenue. A fee arrangement such as Nvidia's may run counter to a Bureau of Industry and Security statue, former BIS Senior Adviser Aiysha Hussain, told Barron's. The agency that manages export controls. Nvidia placed an order for 300,000 H20 chips with Taiwan Semiconductor, adding to existing inventory of 600,000-700,000 chips, Reuters reported in late July. In 2024, Nvidia sold around 1 million H20 chips, the report said, citing research firm SemiAnalysis. In terms of its 12-month price performance, Nvidia has outperformed 90% of all other stocks in Investor's Business Daily's database. Funds own 41% of Nvidia's outstanding shares, according to IBD MarketSurge. Going by its Accumulation/Distribution Rating of B+, it appears that funds are buying the stock. The rating measures price and volume action over the last 13 weeks. The AI chip behemoth has a top-level Earnings Per Share Rating of 99. Further, the stock's all-around strength, or Composite Rating, sits at 99. Is Nvidia Stock A Buy? Looking at chart signals and technical measures can help investors assess whether Nvidia stock is a buy or sell now. Nvidia is past a buy zone that goes up to 193.70, above a flat base's entry at 184.48. The stock is extended now. YOU MAY ALSO LIKE
