Is Nvidia Stock Still a Buy After Record Revenue Visibility and Rising Price Targets?

In the ever-evolving landscape of artificial intelligence (AI), Nvidia (NVDA) has emerged as a dominant force, with its stock price surging to unprecedented heights. Recent developments, including a record-breaking third-quarter revenue of $46.7 billion and a 56% year-on-year increase in data-center AI chip sales, according to a TS2 analysis, have fueled optimism among investors. However, as Goldman Sachs raises its 12-month price target for Nvidia to $240-a 14% increase from its previous estimate-the question remains: Is Nvidia still a compelling long-term buy, or are emerging risks beginning to cloud its AI-driven growth story?

Long-Term Growth Potential: AI's Unstoppable Engine

Nvidia's dominance in the AI chip market is unparalleled, with estimates suggesting it controls 70–90% of the high-end AI processor segment, according to that TS2 analysis. This leadership is underpinned by strategic partnerships, such as a $100 billion investment-and-chip supply agreement with OpenAI and a $5 billion stake in Intel, as noted in a TS2 roundup. These alliances not only secure recurring revenue streams but also position Nvidia at the forefront of AI infrastructure development.

The company's recent product innovations, including the Blackwell series of AI chips, have further solidified its competitive edge. Analysts like James Schneider of Goldman Sachs highlight that Nvidia's GTC developer conference and AI infrastructure announcements have reinvigorated investor sentiment, according to a Coinotag report. Projections for Q3 and Q4 2025 earnings-$1.28 and $1.49 per share, respectively-exceed Wall Street expectations by 3–5%, underscoring robust demand for its solutions (as noted in that Coinotag report).

Geopolitical tailwinds have also bolstered Nvidia's prospects. A regulatory breakthrough in October 2025, where Microsoft became the first company to secure a U.S. export license for advanced Nvidia AI chips to the UAE, signals a shift in U.S. policy toward Middle Eastern allies, according to an Outpost report. This opens new revenue avenues in a region projected to invest heavily in AI-driven industries.

Emerging Risks: Competition and Regulatory Uncertainty

Despite its strengths, Nvidia faces mounting challenges. Qualcomm's recent launch of the AI200 and AI250 chips targets Nvidia's stronghold in data-center inference computing, according to an Analytics Insight report, a segment critical for real-time AI applications. While Qualcomm's offerings are still nascent, their focus on cost efficiency could erode Nvidia's margins in the long term.

Geopolitical risks also loom large. U.S.-China tech tensions have already curtailed Nvidia's access to China's AI market, as noted in the TS2 analysis, and President Donald Trump's proposed export curbs on advanced chips like the Blackwell series could further limit global reach. Such restrictions might force Nvidia to pivot toward domestic clients, potentially slowing its growth trajectory.

Additionally, strategic partnerships like the one with Navitas Semiconductor-a firm developing gallium nitride power technologies-highlight both opportunities and vulnerabilities. While Navitas's innovations could enhance AI infrastructure, its unprofitability and lack of revenue diversification pose risks to the partnership's long-term viability.

Balancing the Equation: A Buy with Caution

Nvidia's AI-driven growth narrative remains compelling, supported by record revenue visibility, strategic alliances, and regulatory tailwinds. However, investors must weigh these positives against intensifying competition and geopolitical uncertainties. The company's ability to innovate and adapt-such as expanding into emerging markets and diversifying its product portfolio-will be critical in sustaining its dominance.

For long-term investors, Nvidia's stock still appears attractive, particularly given its role as the backbone of the global AI industry, according to an InvestorsHub roundup. Yet, prudence is warranted. Monitoring regulatory shifts, competitor advancements, and macroeconomic trends will be essential to navigating the risks inherent in this high-growth sector.