**PhillipCapital Adjusts Nvidia Rating Amid Production Milestones and Market Concerns**

Nvidia Corporation (NVDA), widely regarded as a leader in the AI GPU market, has seen its rating adjusted by PhillipCapital from "Buy" to "Accumulate" due to recent price fluctuations. This shift comes as the company prepares its Blackwell processors for production. PhillipCapital has also increased its target price for Nvidia to $160 from the previous $155, even though the stock was last trading at $141.92.

According to PhillipCapital analyst Yik Ban Chong, cloud service providers are upgrading their AI cloud capabilities to leverage business opportunities from emerging AI startups. Nvidia's H200 Hopper sales have surged to "double-digit billions," marking the fastest product ramp in the company's history. Nvidia has indicated that strong demand for its products will persist at least until the second half of fiscal 2026.

The production of the Blackwell processors began in the fourth quarter of fiscal 2025, and Nvidia projects that the revenue from these goods will surpass their initial estimate of "several billion dollars." Chong also mentioned that Nvidia anticipates reaching supply-demand equilibrium by fiscal year 2026.

Despite these optimistic projections, PhillipCapital foresees a slowdown in Nvidia's earnings growth beyond mid-fiscal 2026. However, the firm maintains that Nvidia remains a dominant force in the AI GPU market, highlighting that the Blackwell processor offers 2.2 times the capabilities of the Hopper processor.

PhillipCapital also raised concerns about the potential impact of US-China trade tensions on Nvidia’s value. The analyst recalled that the onset of the trade war in July 2018 caused Nvidia's stock price to plummet by more than 50% from its peak in October 2018. With China accounting for 13% of Nvidia's sales in the most recent fiscal period, compared to 24% in fiscal year 2019, similar economic policies could materially affect Nvidia’s share price.

PhillipCapital employs a total return-based approach in its equity assessments. While a "Buy" rating is reserved for companies expected to yield returns exceeding 20%, the "Accumulate" rating applies to those forecasted to offer total returns between 5% and 20%.

This assessment underscores the complex landscape Nvidia navigates as it continues to push the envelope in AI GPU development while managing external market pressures.