Nvidia (NASDAQ:NVDA) remains in the spotlight as the tech world weighs the implications of DeepSeek’s latest breakthrough – a chatbot delivering results on par with top models while using only a fraction of the computing power. As the dominant player in AI chips, Nvidia now faces the question of whether this shift could reshape demand for its high-performance hardware.
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That’s not the only storm cloud on the horizon. The looming threat of a global trade war, with proposed 100% tariffs on imported semiconductors, adds another layer of uncertainty.
Some investors aren’t waiting to see how it all plays out – Nvidia’s stock has already tumbled 19% over the past week and a half as concerns take hold.
Though acknowledging this “double whammy” brought on by DeepSeek and potential trade disruptions, top investor James Foord – who sits in the top 4% of TipRanks’ stock pros – spots an opportunity.
“Buying Nvidia around $90-$100 ahead of Q4 earnings is a strategic move,” notes the 5-star investor.
Foord is nonplussed by the DeepSeek and tariff worries, believing these risks are not as stark as some fear.
When it comes to DeepSeek, the investor cites the Jevons paradox for assurances that the demand for AI hardware will remain hale and hearty. According to Jevons, Foord explains, when a resource becomes cheaper it also becomes more widely used.
“Now that AI applications are actually affordable, there are potentially millions of companies and users that will be interested in deploying large language models, or LLMs, and this is still very good for Nvidia,” the investor explains.
As for the tariff turmoil, Foord believes Nvidia’s pricing power will enable it to pass higher costs onto customers, safeguarding its margins in the process.
Moreover, Foord is not overly concerned that Nvidia’s primacy is at risk, citing the company’s industry-leading CUDA software and the stalwart leadership of Jensen Huang and his leadership cadre.
“This is still the same group of people that achieved over 90% dominance in GPUs thanks to superior vision and execution, and I believe we’ll continue to see this in the years to come,” concludes Foord.
To this end, the investor rates NVDA a Strong Buy, hoping to gobble up shares around $100. (To watch Foord’s track record, click here)
Wall Street echoes his bullish stance. With 37 Buys and just 3 Holds, NVDA boasts a Strong Buy consensus. Its 12-month average price target of $179.81 implies a potential 51% upside in the year ahead. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.