Nvidia’s shares recovered some ground on Friday after the sharp drop in its stock the day before. Market volatility over tariffs was the main catalyst behind the gains.
After falling by 5.9% Thursday, shares gained 2.5% on Friday to reach $110.26.
The Dow Jones Industrial Average fell 241 points or 0.6% in the early trading.
The S&P500 fell 0.4% while the Nasdaq Composite dropped 0.2%.
Nvidia’s stock had risen 19% in value on Wednesday, following the announcement by President Trump that he would delay most reciprocal duties for 90 days.
The stock, however, reversed its course after investors responded to the sharp increase in tensions over trade between China and the US.
The White House reports that the total tariffs on Chinese imports for Trump’s second tenure now stands at 145%.
China increased tariffs against US products to 125% on Friday but did not indicate that it would increase further.
Citi reduces NVIDIA Stock Target Price
Citi has reduced its target price for Nvidia to $150, down from $163. Citing a predicted slowdown in graphics processing units (GPUs), the company cited a potential decline in GPU sales.
The bank still maintained its buy rating for the stock despite the reduction. Its new price target implies a rise of 39% from the recent level.
Citi has revised its forecast for GPU sales in 2025-2026. Sales estimates have been trimmed by respectively 3% and 5 %.
Atif Malik, an analyst, attributed this change to hyperscalers’ anticipated cuts in spending, such as Microsoft. Microsoft is reported to be reducing its data center investment.
Malik stated that “our revised outlook” is based upon our expectation that MSFT’s capex for FY26 will most likely shrink, rather than grow.
The trade tensions have also been cited as an obstacle. Malik said that Nvidia’s margins may be “moderately affected by tariffs” and that increased global uncertainty could cause enterprise investment to stagnate.
He did note that Nvidia may be eligible for the USMCA exclusion.
Nvidia’s shares are down nearly 20% in 2025, amid a wider tech decline.
S&P 500’s technology sector is down more than 17 percent year-to-date, largely due to President Donald Trump’s tariffs and concerns about a possible recession.
Wall Street analysts have a bullish outlook on NVIDIA
Wall Street analysts were bullish on AI earlier in the week.
Nvidia was a favorite semiconductor for analyst Joseph Moore, who maintained an overweight rating with a price target of $162.
Moore wrote to his clients Thursday that the immediate impact of the tariffs would be minimal, given the strong demand for Nvidia and the existing mitigation methods.
He wrote: “Our opinion is that NVIDIA’s microeconomic impact is fairly minimal. Near-term demand is still strong, and it is being already mitigated.”
Moore warned that macroeconomic risks in general could have a negative impact on stock prices, particularly through reduced investments financing.
Bernstein analysts reiterated on Monday that they have an outperform rating for NVIDIA Corporation, with a $185.00 price target.
Analysts noted that NVIDIA hardware products are typically affected by the recent reciprocal tariffs.
Due to the provisions of the US-Mexico-Canada Agreement, goods made in Mexico are not subject to the tariffs that the Trump Administration has imposed.
The post NVIDIA Stock Rises 2.5% Friday, Analysts Remain Bullish can be updated as new information unfolds.
