Nvidia (NVDA.O) extends U.S. stock after-hours decline to 0.75%.

Nvidia (NVDA.O) extends U.S. stock after-hours decline to 0.75%.

Nvidia (NVDA.O) experienced a slight decline in its stock price after hours on July 2, 2025, extending its downward trend to 0.75%. This decrease follows a series of analyst upgrades and positive market sentiment surrounding the company's prospects.

Analysts from UBS and other major firms have been bullish on Nvidia's stock, raising their price targets and maintaining a "buy" rating. UBS, for instance, increased its price target from $175 to $205, citing strong demand for AI chips and data center equipment [1]. This optimism is driven by the booming demand for data centers, particularly in regions like Texas, which has seen substantial new load requests [1].

Moreover, Nvidia's recent licensing deal with the U.S. government to sell H20 chips to China under strict rules is seen as a positive development. This deal includes a 15% revenue share from Chinese sales going to the government, which UBS views as a positive for Nvidia's access to international markets [1].

Despite the positive outlook, Nvidia's stock has been trading lower due to broader market conditions. The company's shares have been impacted by a selloff in megacap technology companies and rising doubts about the Federal Reserve's interest rate policy [2]. However, the overall sentiment remains bullish, with analysts expecting Nvidia to report another quarter of double-digit revenue growth [2].

The after-hours decline may be a reflection of investors taking profits and reallocating to less-risky sectors. Nevertheless, the stock's long-term prospects remain strong, driven by Nvidia's leadership in AI chips and data center infrastructure [1, 2].

References:
[1] https://invezz.com/news/2025/08/21/nvidia-stock-dips-but-bulls-are-keeping-a-close-eye-on-q2-earnings-is-now-the-right-time-to-buy/
[2] https://finance.yahoo.com/news/wall-street-races-lift-nvidia-181236630.html