1. Nvidia's stock slipped 0.3% to $136.98 on Tuesday. 2. Jefferies added Nvidia to its highest-conviction picks list. 3. Analyst expects gross margin to rise between 70%-80% this year. 4. Investors face trade uncertainty amid U.S.-China tariff tensions. 5. Nvidia stock is up 2% year-to-date in 2025.
Jefferies' endorsement and expected margin increase suggest strong future performance, similar to prior bullish calls made about Nvidia in 2020 that preceded significant price jumps.
Analyst ratings and expected growth can preemptively influence investor sentiment and stock valuation, especially in a volatile industry.
The anticipated ramp-up of AI chips will drive sustained growth, echoing past trends where product innovation led to lasting valuation increases.