Singapore – Investment firm PhillipCapital has revised its rating on Nvidia Corporation (NVDA) from “Buy” to “Accumulate” due to recent price fluctuations. The company’s Blackwell processors are gearing up for production, prompting PhillipCapital to increase its target price for Nvidia to $160 from $155, even with the downgrade. Currently, Nvidia’s stock is trading at $141.92.
According to PhillipCapital analyst Yik Ban Chong, hyperscalers are enhancing their AI cloud capabilities to take advantage of cloud service opportunities from Gen AI startups. The sales of H200 Hopper have surged to ‘double-digit billions,’ marking the fastest product ramp in Nvidia’s history. The company anticipates strong demand for the H200 Hopper at least until the second half of 2026, following the commencement of Blackwell production in the fourth quarter of 2025. NVDA projects revenue from Blackwell to exceed their previous estimate of ‘several billion dollars.’
Despite the positive outlook, PhillipCapital predicts that Nvidia’s earnings after tax and minority interest growth may slow down post-mid-fiscal 2026 once Blackwell goods are delivered. However, the firm asserts that Nvidia remains a leading player in the AI GPU market, as the Blackwell processor outperforms the Hopper’s capabilities by 2.2 times. Chong also highlights the potential impact of trade tensions between the US and China on Nvidia’s value.
The US-China trade war escalation since July 2018 resulted in a more than 50% decline in NVDA’s stock price from its peak in October 2018. With China accounting for 24% of Nvidia’s sales in fiscal year 2019, compared to the current 13%, any re-implementation of similar tariff policies could significantly affect NVDA’s stock price. Chong points out that the company’s previous share decline from $7.03 to $3.24 occurred under different market conditions.
PhillipCapital, based in Singapore, evaluates equities using a total return-based approach. While companies expected to provide returns exceeding 20% receive a “buy” rating, those with forecast total returns of 5% to 20% are classified as “accumulate.” The firm emphasizes the importance of considering market circumstances and potential risks in assessing investment opportunities.