Shares of Nvidia fell sharply on Thursday, declining nearly 3% as broader market weakness weighed on technology stocks.
Rising oil prices were a key driver of the risk-off sentiment.
Brent crude surged 6% to above $108 per barrel, while West Texas Intermediate climbed 5% to above $95, adding to inflation concerns and pressuring equities.
US President Donald Trump said he expects the surge in oil prices to ease, noting that “it’s all going to come back down to where it was and probably lower.”
While rising oil prices and geopolitical uncertainty are weighing on broader markets, investor focus remains on whether Nvidia can sustain its growth trajectory amid rising competition, cost pressures, and regulatory constraints.
Key risks: china, costs, and competition
Despite continued strength in its underlying business, Nvidia shares have largely moved sideways since August 2025.
Analysts attribute the muted performance to growing investor concerns about the sustainability of artificial intelligence spending.
One of the most closely watched risks remains Nvidia’s exposure to China.
Export controls and regulatory restrictions have limited shipments of advanced GPUs to the region, creating uncertainty around future revenue contributions.
At the same time, rising input costs—particularly for high-bandwidth memory—are putting pressure on margins as the company ramps production of its latest AI platforms.
Competition is also intensifying. Hyperscalers are increasingly developing in-house chips, raising questions about Nvidia’s ability to maintain its pricing power and market share over time.
Wall street remains bullish on Nvidia stock
Despite near-term concerns, several Wall Street firms have recently raised their price targets on Nvidia.
Firms including Bank of America, Rosenblatt Securities, and Raymond James have set targets in the $300 to $360 range.
Overall, about 93% of analysts rate the stock as a buy, reflecting continued confidence in Nvidia’s long-term positioning in the AI ecosystem.
Legal overhang resurfaces
Separately, a California federal judge on March 25 certified an investor class in a securities lawsuit against Nvidia and its CEO, Jensen Huang.
The lawsuit alleges that NVIDIA misclassified substantial crypto-related revenue within its Gaming segment, thereby downplaying its exposure to the volatile cryptocurrency market and potentially misleading shareholders about the sustainability of its growth.
Plaintiffs claim Nvidia understated more than $1 billion in GPU sales tied to crypto miners.
The plaintiffs, led by a Swedish investment firm, claim that NVIDIA executives were aware that crypto miners were a significant driver of gaming segment revenue but failed to adequately disclose this in their reporting.
The issue dates back to the 2017–2018 cryptocurrency boom, when GPUs were widely used for mining digital assets such as Bitcoin.
In 2022, Nvidia agreed to pay a $5.5 million penalty to the US Securities and Exchange Commission over inadequate disclosures related to the impact of crypto mining on its business.
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