Wall Street shows some hope after weeks of gloom, thanks to strong earnings reports. But Piper Sandler analyst Harsh Kumar sees trouble ahead for NVIDIA. His research suggests NVIDIA might lose $9.8 billion in yearly data center sales if spending slows down next year. This equals about 6.45 percent of their total revenue from this part of the business.
The $10 billion revenue hit would lower earnings per share by around $0.40. Based on this math, Kumar set a worst-case price target of $76.25 for NVIDIA stock. His best-case target is $126.75, with current prices near $114. NVIDIA recently said it expects up to $5.5 billion in charges during its latest quarter from problems with its China-specific H20 GPU.
TechInsights also studied how trade fights between the US and China might hurt computer chip markets worldwide. With a normal 10 percent tariff rate, they expect the chip market to reach $844 billion by 2026. But if both countries keep their current 100+ percent tariffs, the market could shrink to $557 billion that year, 34 percent smaller than expected. NVIDIA stock remains flat today but has fallen 17 percent this year.
The $10 billion revenue hit would lower earnings per share by around $0.40. Based on this math, Kumar set a worst-case price target of $76.25 for NVIDIA stock. His best-case target is $126.75, with current prices near $114. NVIDIA recently said it expects up to $5.5 billion in charges during its latest quarter from problems with its China-specific H20 GPU.
TechInsights also studied how trade fights between the US and China might hurt computer chip markets worldwide. With a normal 10 percent tariff rate, they expect the chip market to reach $844 billion by 2026. But if both countries keep their current 100+ percent tariffs, the market could shrink to $557 billion that year, 34 percent smaller than expected. NVIDIA stock remains flat today but has fallen 17 percent this year.
