Nvidia CEO Jensen Huang is set to meet with President Donald Trump at the White House on Friday after a tumultuous week for the chipmaker’s stock. Shares of Nvidia have lost over 12% this week following the emergence of a sophisticated, lower-cost AI model from Chinese startup DeepSeek. The new competition has spurred concerns on Wall Street about the competitiveness and expenditure on AI by American companies.
Despite this, analysts have remained largely optimistic about Nvidia’s stock, suggesting that the market’s reaction might have been exaggerated. Shares wavered between gains and losses near $125 in afternoon trading on Friday. The rapid rise of DeepSeek’s app, which claims to have developed an AI model that rivals American competitors at a fraction of the cost, has brought into question the spending strategies of leading AI companies in the U.S. This development sent shares of Nvidia and other AI stocks into a tailspin earlier in the week.
Huang’s White House meeting timing
However, analysts from prestigious firms such as Bank of America, Bernstein, Citi, Wedbush, and Raymond James suggest that the recent market reaction provides an enhanced buy opportunity. Analysts at these firms added that competition from China could push big tech companies like Microsoft, Amazon, and Alphabet to increase their spending on AI, potentially benefiting Nvidia, Broadcom, and other AI chipmakers.
In earnings calls this week, executives from Microsoft and Meta highlighted ongoing investments in AI infrastructure. Huang’s upcoming meeting at the White House also follows reports that the Trump administration is considering further tightening restrictions on the sales of advanced U.S. chips to China. Sales to China accounted for more than 15% of Nvidia’s revenues in its fiscal third quarter.
Nvidia is scheduled to report its fourth-quarter results on Feb. 26.
