Nvidia Corporation (NVDA) stock dropped 8.48%, raising investor concerns despite strong Q4 earnings. Wall Street analysts highlight margin pressures as the company prioritizes Blackwell chip production over cost-cutting, expecting a 71% margin in Q1, down from 73.5% in Q4. Benchmark analyst Cody Acree notes margins may stabilize around 71.0%-71.5% in Q2. DA Davidson’s Gil Luria warns of fluctuating margins due to rapid GPU releases and potential oversupply risks as major clients like Microsoft, Meta, and Amazon reduce spending. Chinese rivals like Huawei also pose competition. Despite these concerns, NVDA holds a Strong Buy consensus rating, with a $178.66 price target indicating 48.7% upside potential. — news from TipRanks
