Nvidia shares continued to decline on Friday, extending the selloff that began after the company’s latest earnings release.
The chipmaker’s strong results initially lifted its stock, but the gains reversed sharply as broader market concerns overshadowed optimism around artificial intelligence demand and the durability of Nvidia’s growth cycle.
Nvidia stock was down 2% at $175.64 on Friday, following a 3.2% decline after its earnings report, which had initially prompted a rally before fading.
The pullback weighed on the semiconductor sector more broadly, with Advanced Micro Devices and Broadcom each falling 3%.
While concerns about an AI bubble continue to circulate, analysts broadly maintained a constructive view of Nvidia’s fundamentals.
The company’s accelerating revenue trajectory and comments about the long operational life of its chips provided reassurance that demand across the AI ecosystem remains strong, even as customers contend with tighter cash flows and rising debt burdens.
Truist Securities analyst William Stein argued that Nvidia’s latest commentary underscored the absence of classic bubble conditions.
He wrote that the “telltale sign of a bubble” would be hardware ordered without real economic use.
Instead, he pointed to Nvidia’s disclosure that its A100 chips—first shipped six years ago—remain deployed at full utilisation.
“We believe this is the clearest indication that we are not in a bubble…at least not yet,” Stein wrote.
He raised his price target to $255 from $228 and reiterated a Buy rating.
Analysts raise targets as AI spending momentum persists
UBS analyst Timothy Arcuri was similarly upbeat, projecting considerable upside in Nvidia’s profitability over the next several years.
He wrote that the “odds are very high” that earnings per share will rise substantially in 2027, noting that the firm’s model forecasts roughly $11 per share compared with the broader Street estimate of about $8.50.
Arcuri added that Nvidia “seems to be actually tightening its grip on broadly enabling AI across modalities (text, video, etc..) and industries.”
He maintained a Buy rating with a $235 target.
Morgan Stanley also raised its target price, lifting its forecast to $235 from $220 and reiterating an overweight rating.
The bank highlighted Nvidia’s ability to “execute at a very high level,” noting that quarterly revenues grew sequentially by $10 billion, surpassing guidance by $3 billion, with expectations for another $8 billion increase in January.
It added that “hundreds of billions of demand (and climbing)” remain unserved, supporting further upside as AI sentiment stabilises.
Goldman Sachs raised its target to $250 from $240 and maintained a buy rating, citing Nvidia’s “sustainable model advantage over peers in AI training applications,” expectations for material upside to consensus estimates, and what it described as “relatively appealing” valuation at current levels.
Foxconn expands AI partnership with Nvidia
Beyond equity markets, Nvidia’s ecosystem continues to expand through global partnerships.
Foxconn said on Friday that a $1.4 billion supercomputing centre it is developing with Nvidia will be completed in the first half of 2026.
The facility will become Taiwan’s largest advanced GPU cluster, powered by Nvidia’s Blackwell GB300 chips, according to Neo Yao, CEO of Foxconn’s new AI-focused unit, Visonbay.ai.
The 27-megawatt centre is expected to be Asia’s first GB300 AI data facility.
Nvidia vice president Alexis Bjorlin said that as GPU technology evolves rapidly, “building individual facilities may no longer make economic sense,” arguing that renting compute capacity could offer better returns by aligning usage with product and business cycles.
Foxconn, Apple’s top iPhone assembler, has been expanding into electric vehicles and AI data centres and is now Nvidia’s main manufacturer of AI racks—server systems designed for intensive AI workloads.
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