Analysts Are Tweaking Their Nvidia Price Tags: Blame the Chip Sales Jitters, Apparently

M. coolM. cool
4 min read

Okay, buckle up, buttercups, because we need to chat about NVIDIA (NVDA). You know, the company that basically prints money by selling the super-smart brains for all the AI stuff taking over the world? Well, even the king of the AI hill is having a bit of a rough patch, and the folks who predict stock prices (analysts, bless their pointy-headed hearts) are starting to get a little fidgety about how many chips NVDA can actually sell.

Turns out, they're revising their price targets, and it all boils down to something called "chip demand." Or, more accurately, worries about whether that demand might hit a few speed bumps thanks to a series of unfortunate events. Let's break it down, shall we?

The Big Oopsie: The H20 China Problem (It's Indefinite!)

First up, the U.S. government delivered a bit of a buzzkill. They told NVIDIA it needs a special permission slip (a license) to send its H20 chips to China, Hong Kong, and Macao. And the kicker? According to NVIDIA's own filing, the government said this license requirement is for the "indefinite future."

"Indefinite future," huh? As the text points out, that's kind of like waiting for "The Twelfth of Never." Basically, don't hold your breath for this to go away anytime soon.

Because of this big fat roadblock, NVIDIA expects to take a $5.5 billion hit in its next financial quarter (Q1 FY26). That's like finding $5.5 billion worth of H20 chips sitting in a warehouse, waving sad little flags because they can't go to the party in China, plus money lost on deals that might not happen. That's a serious chunk of change to just... charge.

2025 So Far: A String of Bad Hair Days for the Stock

It seems this H20 issue wasn't the only thing raining on NVIDIA's parade. The report mentions NVDA shares were down 17.4% in 2025 (up to the time the report was written). Why the tumble? A "series of unfortunate events," apparently. Sounds like a Lemony Snicket book title, but it's about stock prices!

Let's meet the unfortunate events:

  1. The Cheap Chip Guy Shows Up: Enter DeepSeek, a Chinese AI company. What do they do? They make cheaper large language models (LLMs) than the competition. Think of it as someone showing up with a perfectly good store-brand version of a fancy expensive item. If customers go for the cheaper option, that could eat into NVIDIA's potential sales. Nobody likes an undercutter!

  2. Tariff Tantrums: Remember when President Trump announced tariffs on Chinese goods would jump to 145%? And China said, "Oh yeah? 125% for you, USA!" It was a bit of a trade-war spat. Even though Trump later mumbled something about the tariffs coming down, the whole thing created a big, confusing mess that makes selling stuff overseas feel like navigating a minefield. Uncertainty? Bad for chip sales forecasts!

  3. Huawei Stealing the Lunch Money: Reports popped up that China's own tech titan, Huawei, is ramping up its AI chip production. This is like your main competitor suddenly building their own factory right next door to your biggest customer and promising to sell them something similar, probably cheaper, and definitely without needing a foreign permission slip. Big threat to NVDA's piece of the pie in China!

Why Analysts Are Getting Jittery About Chip Sales

So, you've got a key product blocked from a massive market indefinitely, you've got cheaper rivals popping up, you've got trade wars making everything unpredictable, and you've got a major local player building their own competing gear.

Put all that together, and what do you get? Analysts start looking at their spreadsheets, squinting, and saying, "Hmm, maybe NVDA isn't going to sell quite as many chips as we thought next year... or the year after."

Because analyst price targets are basically fancy guesses about how much money a company will make in the future, and if they think chip demand (aka sales) might be lower because of all this drama, their price targets have to come down too. They're just revising their maps because the territory suddenly got a lot bumpier and harder to navigate for chip deliveries.

By the way, while we're talking about price maps, the stock has done all sorts of things over the years, including fancy maneuvers like a nvidia stock split (like the one in June 2024). That changes the number on the stock price, but it doesn't change the reason analysts are worried about chip sales right now. It's just part of the stock's wacky history!

So, What's the Takeaway?

The big picture here is that while NVIDIA is still a tech powerhouse, its ability to sell its incredibly valuable chips is hitting some real-world obstacles – government rules, competition on price, and rivals building their own stuff. These aren't small things.

These issues are making the analysts who predicted those sky-high future prices pause and say, "Okay, maybe we need to adjust our expectations a bit." It's not necessarily the end of the world for NVIDIA, but it definitely makes the immediate future, and thus their price targets, a bit less sunny.

This isn't financial advice, just a peek behind the curtain of why the stock chart looks a bit rough lately! Figuring out what happens next is, as always, the tricky part.

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M. cool
M. cool