Nvidia (NVDA) has been one of the undisputed winners of the AI boom, with its stock surging over the past two years on the back of soaring demand for its industry-leading GPU chips. The company’s data center business has posted record-breaking revenues quarter after quarter, driven by a wave of enterprise and cloud provider investment in generative AI infrastructure. However, as we look ahead to the rest of 2025, a growing number of risks are starting to cloud Nvidia’s long-term outlook — and analysts are beginning to run downside scenarios that would have been unthinkable just months ago.
In a recent research note, Piper Sandler issued a stark warning to investors, detailing a worst-case scenario where Nvidia’s valuation could tumble to around $77 per share. Adding fuel to the fire, U.S. lawmakers have reportedly intensified scrutiny on Nvidia, highlighting growing concerns about widespread smuggling of its high-end AI chips into China.
