Advisors bullish on Nvidia in wake of AI chipmakers' return to China

Nvidia is back and not just in China. Shares of the AI chipmaker slash market bellwether have officially doubled since bottoming out after President Donald Trump’s “Liberation Day” tariff announcement in April.

So what are wealth managers supposed to do with the stock now? Obviously they can’t live without it? Right?

Nvidia (Ticker: NVDA) said Tuesday it would once again be selling certain types of its AI chips in China after the Trump administration lifted the restrictions against the practice it pronounced back in April. China represented about $17 billion in revenue in the fiscal year ending January 26, or 13% of total sales, based on its latest annual report.

This week's announcement sparked a 5% spike in NVDA’s stock, lifting it to an all-time high of $172, and up 28% year-to-date. By comparison, the S&P 500, of which NVDA makes up an outsized 6.6%, is up 6.8% thus far in 2025.

Perhaps more importantly, the pop after this week’s big China news capped off a remarkable run for the company which saw its stock sink to $86 per share in April as Wall Street began to question its prospects in the wake of Washington’s trade limitations. NVDA also regained its title as the world's largest company with a market capitalization of $4.2 trillion.

Dory Wiley, CEO of Commerce Street Holdings, for one, believes NVDA is “still the most interesting investment in the world” despite the recent run-up in the stock. He refers to the company as its “own asset class” due to its “truly amazing” margins, profits, growth and market position. Right now, he has a market weight on the stock but is hoping for a pullback to raise his overall portfolio weighting.

“I have said for the last four years, it is an overweight on portfolio allocation, but the buys are on the drawdowns. Can you buy here and be happy in three years? Yes,” Wiley said. 

Elsewhere, Chen Li, investment research associate with GoalVest, also remains bullish on NVDA, even as it has become the most valuable company in the world.

“The company is the undisputed leader in chip design, thanks to its decade-long head start in building CUDA and a world-class developer ecosystem. Jensen Huang, as founder and CEO, continues to deserve a premium for his exceptional execution, long-term vision, and credibility,” Li said.

Meanwhile, Thomas Raymond, founding partner of Callan Family Office, believes the stock was mispriced back in April in the face of market and regulatory turbulence, but has returned to fair value after this week’s surge.

“In the equity market correction, Nvidia’s stock price fell to where it traded at a similar Price/Earnings multiple (forward) as Coca-Cola at 24-times. Said differently, investors were valuing the future growth of soft drinks the same as they were with software. That math made little sense to us. After rebounding to where it is today, it’s multiple is more aligned with our digital reality,” Raymond said.

The $5 trillion question

Now that NVDA has reclaimed its mojo, the logical question for investors – and their advisors - to ask is whether the world’s most valuable company still has room to grow.

Wiley, for one, offers a resounding yes, noting that this is still the early stage of the AI revolution. He points out that this year alone, revenue is projected to grow four times that of 2023, while EPS is projected at over 20% growth for the next three years.

Similarly, Raymond believes Nvidia’s large size may instinctively usher in an investing aura of “guilt before innocence,” but its track record suggests the opposite.  

“Nvidia is the gas station fueling this AI journey and we still see plenty of runway ahead. Nvidia also has a history of defying doubters. For the first quarter, the company reported revenue of $44.1 billion, topping estimates of $43.3 billion. This number eclipses the $26 billion reported in the same period last year,” Raymond said.

Li points out the company has repeatedly proven its resilience - weathering export restrictions to China, concerns about AI demand saturation, and rising competitive pressure, including the recent DeepSeek moment. And each time, Nvidia has executed through the noise.

“Most recently, Jensen successfully persuaded the U.S. government to ease restrictions on the export of the H20 chip, reinforcing the idea that global adoption of U.S. technology - especially Nvidia’s - is central to maintaining US AI leadership. This development has opened the door to significantly larger global demand for Nvidia’s products,” Li said.

Searching for a catalyst

As for the catalyst that will spur the stock on its next leg higher, Commerce Street’s Wiley said it all comes back to NVDA’s 90% market share in AI chips.

“NVDA is the core mecca of AI technology as every other Mag 7 and many, many major companies come to NVDA for their chips.  Analyst projections are a stock price of 273 in 5 years, 70% gain with a forward PE of 25. It will probably happen in 3,” Wiley said, adding that the company dominates in new chip technology with Blackwell and its upcoming Rubin.

Callan’s Raymond, meanwhile, concludes the spark to push NVDA higher will be the growth market that is AI, which has between $17.1 and $25.6 trillion in annual potential, according to McKinsey’s estimate. 

“So, even if half true, Nvidia still may have ways to flourish,” Raymond said.

Finally, GoalVest’s Li believes the primary driving catalyst remains the GPU’s central role as the “brain” of computers, autonomous systems, robots, and AI agents, coupled with the still-low rate of AI adoption across enterprises.

Even if the supply of internet-scale data for LLM (Large Language Model) training is exhausted, the next wave—simulation data for physical AI—will continue to drive GPU demand. Themes like sovereign AI and AI agents are generational shifts, and regardless of who builds the most successful models, Nvidia is well positioned as the infrastructure leader and a key beneficiary,” Li said.