Nvidia has rebounded a massive $1 trillion in market value over the past two months, powered by strong earnings and renewed demand from AI partners like Microsoft, Meta, Google, and Amazon. The recovery highlights the fading impact of the earlier DeepSeek-driven crash and rising confidence in the company’s next-gen Blackwell chips.
Nvidia Corp shares have surged by $1 trillion in market value in just two months, reclaiming losses from the earlier “DeepSeek” sell-off—a crash that cost the company a jaw-dropping $600–$969 billion in a single session . Analysts attribute the recovery to strong financial results, eased concerns over U.S. chip export restrictions to China, and escalating global demand for AI chips.
Earnings & Market Confidence
The latest quarterly report answered investor doubts, showing sustained demand for Nvidia’s AI chips despite limited supply of the new Blackwell architecture. Coupled with favorable near-term AI spending outlooks, the earnings beat reignited optimism. Bloomberg notes the stock has climbed over 45% since its April low, valuing Nvidia at approximately $3.4 trillion—second only to Microsoft.
Image source:-timesofindia.indiatimes
Major Clients Fuel Growth
Tech giants—Microsoft, Meta, Google (Alphabet), and Amazon—contribute over 40% of Nvidia’s revenue. They’re projected to invest roughly $330 billion in AI infrastructure by 2026, a ~6% increase from last years. WisdomTree analyst Samuel Rines expects Nvidia’s P/E ratio to rise into the high-30s or low-40s, driven by sustained inference demand.
Valuation & Analyst Sentiment
Trading at around 29× forward P/E—below its decade average of 34×—and a PEG ratio under 0.9, Nvidia remains undervalued compared to peers in the “Magnificent Seven” . Bloomberg reports that 77 out of 78 analysts maintain a “buy” rating, with the average price target claiming a further 24% upside to around $170 .
Image source:-https://r.search.yahoo.com
Risk Factors & Outlook
While U.S. export restrictions and Chinese revenue exposure (13% of Q1 revenue) are risks, Nvidia’s Blackwell chip rollout and partnerships with Middle Eastern governments offer additional growth levers. Moreover, only about 74% of long-only funds currently hold Nvidia—compared to Amazon and Apple—suggesting room for portfolio inflows
