Bernstein Affirms Outperform on NVIDIA, $185 Price Target

Bernstein SocGen Group analyst Stacy Rasgon reiterated an Outperform rating and $185 price target on NVIDIA (NASDAQ: NVDA).

“Are Mexico-sourced AI servers exempt from tariffs?

Our initial read suggests YES; Among the many questions we fielded last week, one of the most frequent involved whether or not NVDA’s AI datacenter products would be subject to tariffs.

While semiconductors overall have been broadly exempted from reciprocal tariffs, NVDA’s products aren’t semiconductors but rather primarily hardware, and as such should be generally exposed to tariffs.

However, products from Mexico that are compliant with the US-Mexico-Canada agreement (USMCA) are (as of now) exempt from all new tariffs in Trump’s order last week, and (some of) NVIDIA’s AI datacenter products are made there.

Hence, we have tried to work out the company’s footprint, a well as taken a read through the relevant regulations.

NVDA has of course gotten completely hammered along with everything else in the wake of the Trump Tariff Tsunami. We know it is not alone in this fact.

Nevertheless the shares have fallen 30% YTD with half of that coming since Tuesday.

And while acknowledging considerable uncertainty in this environment around the “E,” the stock now trades at ~20x P/FE, its lowest level in almost a decade.

We are not sure where NVDA (or anything else) will bottom in the near term. But we do believe the AI narrative is still real.

And once things do settle down (hopefully soon!) the stock at these levels is probably worth a look. We rate NVDA Outperform.”

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