‘Don’t Miss the Next Leg Higher,’ Says Investor About Nvidia Stock
Nvidia (NASDAQ: NVDA) has recently faced notable downward pressure, with the stock declining 17% year-to-date due to a mix of macro headwinds and internal execution concerns. Issues such as tariffs on Chinese imports, the Blackwell chip ramp-up, and rising competition from AI rivals like DeepSeek have added to investor uncertainty.
- These factors have led to fears that Nvidia’s explosive growth may be losing momentum.
- Yet some market watchers now view this pullback as a tactical entry point, not a long-term decline.
Kevin George Turns Bullish on Nvidia
Investor Kevin George, previously cautious on NVDA, now sees the selloff as a “stable market correction” that could precede a significant upside rally. His shift reflects both macroeconomic improvements and operational progress at Nvidia.
- George points to waning tariff threats as a key positive, with the U.S. reportedly considering lowering China-specific tariffs from 145% to around 50%–60%.
- This change could reduce volatility in chip stocks and improve investor sentiment across the semiconductor industry.
Nvidia’s Domestic Manufacturing Strategy
A major reason for George’s renewed optimism is Nvidia’s move to localize manufacturing, reducing its exposure to overseas supply chain risks. The company has started producing Blackwell chips at TSMC’s Phoenix, Arizona facility, while building supercomputer manufacturing sites in Texas.
- These U.S.-based plants are expected to reach full capacity within 12 to 15 months, which could further stabilize production timelines.
- This strategy enhances Nvidia’s appeal amid rising political tensions over tech sovereignty.
Product Momentum: Blackwell and RTX 5060 Launches
Despite delays, Nvidia is back on track with its Blackwell architecture rollout, which is now being introduced via the GeForce RTX™ 5060 GPU series, set to hit shelves in April and May.
- Starting at $299, the RTX 5060 series targets gamers with enhanced rendering and AI-powered graphics.
- George sees this as a new revenue stream that could support growth through the next several quarters.
Managing the China Write-Down
Nvidia recently disclosed a $5.5 billion write-down related to restrictions on its H20 chips in China, but analysts argue this loss is more reflective of market leadership than strategic failure.
- George notes that this setback is manageable, considering Nvidia’s strong cash position and commitment to shareholder returns.
- He views it as part of the cost of leading the AI hardware revolution.
Analyst Ratings and Price Target Outlook
Reflecting George’s new stance, he has upgraded Nvidia from Sell to Buy, joining a broader wave of optimism across Wall Street analysts.
- NVDA currently holds a Strong Buy consensus, with 35 Buys, 5 Holds, and only 1 Sell.
- The average 12-month price target stands at $165.22, suggesting a 48% upside from current levels.