Nvidia CEO Meets With President Trump Amid Market Volatility
Nvidia CEO Jensen Huang recently met with President Donald Trump at the White House following a turbulent week for the chipmaker's stock.
Shares of Nvidia have fluctuated significantly, losing over 12% this week due to concerns about competition from Chinese AI startup DeepSeek. The company's app has challenged the dominance of American AI leaders, raising questions about the competitiveness and spending of tech giants.
Despite the market volatility, analysts remain largely bullish on Nvidia's stock. Bank of America advises investors to view the recent selloff as a buying opportunity. Bernstein, Citi, Wedbush, and Raymond James also suggest that the market's reaction may have been exaggerated.
Raymond James and Bank of America anticipate increased spending on AI by Big Tech companies like Microsoft, Amazon, and Alphabet in response to competition from China. This development is expected to benefit Nvidia, Broadcom, and other AI chipmakers.
Microsoft and Meta have reaffirmed their commitment to invest billions of dollars in AI infrastructure this year, further supporting Nvidia's growth prospects.
Huang's meeting with President Trump coincides with reports of potential further restrictions on the sale of advanced U.S. chips to China. Nvidia's sales to China accounted for over 15% of its revenue in the fiscal third quarter.
Nvidia is scheduled to report its fourth-quarter results on February 26.