NVIDIA Stock Jumps: Here’s What DBS Predicts Next
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Shares of NVIDIA (NASDAQ:NVDA) have faced significant challenges this year, with geopolitical risks casting a shadow over the company’s global ambitions. However, in a recent development, the Trump administration has announced its intention to revoke the AI diffusion rule introduced by the previous Biden administration. This move has led to a surge in NVIDIA’s stock price, with shares jumping nearly 7% since the news.
According to a report by TipRanks, NVIDIA’s top brass had opposed the rule, arguing that it would hamper revenue growth and hurt global competitiveness. The rollback of the rule is likely to be a welcome move for CEO Jensen Huang and the market, which has seen NVIDIA shares struggle to build momentum in 2025.
However, despite this positive development, DBS analyst Fang Boon Foo believes that a bigger near-term concern may lie ahead. “While the withdrawal of the AI diffusion rule marks a victory for NVIDIA, we think the bigger near-term uncertainty lies in the upcoming sector-specific tariff policies,” the analyst said, as quoted in the TipRanks report.
In an interview with TipRanks, Fang Boon Foo noted that, setting aside trade-related concerns, NVIDIA’s prospects “remain largely intact for now.” The Street continues to forecast solid revenue and earnings growth over the next 12 months – 54% and 47%, respectively – driven by ongoing AI capital expenditures from hyperscalers, which were reaffirmed in their most recent Q1 FY25 results.
Fang Boon Foo will also be closely watching key data points in NVIDIA’s upcoming 1QFY26 results, slated for release on 28 May. These include “1) steps to serve the Chinese markets after the latest H20 export restrictions, 2) progress of Blackwell ramp…” As noted in the TipRanks report, Fang rates NVIDIA shares a Buy, with a $160 price target implying that the stock will gain 31% in the months ahead.
The TipRanks report also noted that among Fang’s colleagues, positive NVIDIA reviews are par for the course, with 34 Buys vs. 5 Holds and 1 Sell, making the analyst consensus rate the stock a Strong Buy. At $164.35, the average price target factors in a one-year gain of 35%.
As reported by TipRanks, NVIDIA’s stock has struggled to build momentum in 2025, due in part to geopolitical risks. However, with the rollback of the AI diffusion rule and a potential tariff policy update on the horizon, investors are eagerly awaiting the company’s upcoming earnings results to gauge the impact on its business.
In related news, investors are advised to keep a close eye on NVIDIA’s progress in serving the Chinese markets after the latest H20 export restrictions, as well as the company’s Blackwell ramp. As stated in the TipRanks report, these key data points will be crucial in determining the company’s future prospects.
For more information on NVIDIA’s stock forecast, investors can visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Source: https://www.tipranks.com/news/nvidia-stock-jumps-heres-what-dbs-predicts-next
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