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Nvidia (NASDAQ: NVDA) is somewhat struggling to maintain a firm footing on Tuesday, October 21.
Namely, the chipmaker’s market share in China plummeted to zero last week, as Beijing and Washington squeezed the company from both sides amid the ongoing tariff wars.
“We’re 100% out of China. From 95% market share to 0%. Whatever policy did that, it made America lose one of the world’s biggest markets,” said CEO Jensen Huang in a recent interview.
As a result, NVDA stock was trading at $182.42 at the time of writing, down 1.29% on the five-day chart.
Despite the disruptions in the Chinese market and their short-term effects on share prices, however, a lot of investors remain positive on the future of the GPU producer. The key reason is that while China used to account for nearly a quarter of the company’s data center revenue, the number dropped to less than 6% in the second quarter of fiscal 2026.
Accordingly, even if totally blocked out from the Asian country, Nvidia is not likely to suffer any major blows in the long run, at least in theory. What’s more, the issue at hand is the result of political bickering, not weakening demand for artificial intelligence (AI) solutions.
Also worth mentioning is that the company predicts Q3 revenue of $54 billion, implying 54% year-ofver-year (YOY) excluding any H20 sales in China. That is, next month’s Q3 reports might still blow expectations out of the water.
Wall Street positive on Nvidia
Last earnings calls marked Nvidia’s 9th consecutive quarter of YOY growth exceeding 50%, and the Wall Street estimates for the stock’s next year performance reflect further optimism.
The stock received a price upgrade from $183.22 to $225 from Mizuho Securities on Monday, October 20, together with a “Buy” rating, citing Nvidia’s dominant position in the sector and projecting $300 billion in AI data center revenue by 2028. On the same day, Bank of America (BoA) reiterated its own “Buy” rating, too, albeit without price forecasts.
A total of 38 analysts project an average Nvidia stock price target of $224.38 for the next 12 months. The figure translates to a 23.92% upside from the current price, according to the market research platform TipRanks.
More impressively, the ratings are nearly uniform, with 36 analysts considering NVDA a “Buy” and the remaining two a “Hold” and a “Sell.”
Ultimately, Wall Street remains bullish and unaffected by the dramatic developments overseas, while investors continue to bet that Nvidia’s long-term AI dominance will outweigh any geopolitical setbacks thanks to a robust earnings momentum.
Featured image via Shutterstock
