TLDR
- Nvidia stock gained 0.2% in premarket trading Monday as Taiwan Semiconductor manufactured the first U.S.-made Blackwell chip wafer
- The domestic production milestone could protect Nvidia from tariff risks while supporting strong AI chip demand
- Investor Adria Cimino forecasts the stock reaching $284 by early 2027, a 100% increase based on historical launch patterns
- Wall Street analysts maintain Strong Buy rating with 36 Buy recommendations and $224.69 average price target
- Second quarter fiscal 2026 revenue hit $46.7 billion, marking 56% year-over-year growth
Nvidia stock climbed 0.2% to $183.65 in premarket trading Monday morning. The move follows news that Taiwan Semiconductor Manufacturing completed the first U.S.-made wafer for Blackwell chips.
The stock finished Friday’s session up 0.8%. Over the past week, shares dropped 2.7% as investors debate AI investment valuations.
Taiwan Semiconductor’s achievement represents a major step for domestic chip manufacturing. CEO Jensen Huang linked the milestone to reshoring efforts aimed at bringing vital technology production back to American soil.
The U.S. production facility could help Nvidia avoid potential tariff costs. This provides more supply chain flexibility as demand for AI processors continues growing.
AI Investment Debate Heats Up
Market watchers are split on whether current AI spending levels are sustainable. Richard Flax from Moneyfarm noted similarities to past technology bubbles.
The environment features transformative technology, massive capital investment, and elevated expectations. But Flax highlighted key differences this time around.
Demand remains strong across the sector. Profitability stays high for AI-focused companies.
Most businesses investing in artificial intelligence infrastructure generate substantial cash flow. This financial strength provides a buffer against potential market corrections.
Revenue Performance Stays Strong
Nvidia’s latest quarterly results support the bullish case. The company reported $46.7 billion in second quarter fiscal 2026 revenue.
That figure represents 56% growth compared to the prior year. Blackwell Data Center sales showed 17% sequential expansion.
Huang previously described demand for the AI chips as “insane.” The Blackwell architecture succeeds the popular Hopper generation.
Investor Adria Cimino expects strong performance to continue. She predicts shares could reach $284 by early 2027 based on historical patterns following major chip releases.
That price target implies 100% upside from early 2025 levels. The stock has already surged nearly 90% over the past six months.
Analyst Outlook Remains Bullish
Wall Street maintains overwhelming confidence in Nvidia’s prospects. Thirty-six analysts rate the stock a Buy.
Just one analyst assigns a Hold rating. Only one recommends selling shares.
The Strong Buy consensus includes a 12-month average price target of $224.69. That suggests 23% potential upside from current levels.
Cimino previously forecast Nvidia reaching $10 trillion market capitalization by 2030. She acknowledges risks including geopolitical tensions and economic slowdowns.
Reduced capital spending from major tech companies would impact sales directly. However, she expects these headwinds won’t materialize in force.
Other semiconductor stocks also gained Monday. Advanced Micro Devices rose 2% in premarket action.
Broadcom shares climbed 0.7%. The sector appears optimistic about continued AI infrastructure investment.
Taiwan Semiconductor’s production of the first domestically manufactured Blackwell wafer gives Nvidia concrete progress toward expanded U.S. manufacturing capacity while meeting persistent demand for next-generation AI chips.
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