As of September 2025, major analysts generally hold a positive outlook on Nvidia (NVDA), driven by its dominant position in the artificial intelligence (AI) chip market and strong financial performance. However, concerns regarding valuation, competition, and regulatory scrutiny persist.

According to www.iAsk.Ai - Ask AI: Nvidia's financial standing in July 2025 shows the company trading above the $160 level, marking a more than 25% year-to-date gain. Its market capitalization exceeds $4 trillion, with a trailing Price-to-Earnings (P/E) ratio around 55.96. While this P/E is considered elevated by market standards, it is lower than its recent historical average of approximately 68. The data center division remains a primary revenue driver, capitalizing on the surging demand for AI across various sectors, including big tech, cloud services, and emerging enterprise applications. Nvidia consistently reports gross margins near 70% and frequently surpasses consensus earnings expectations [1].

Analyst sentiment remains largely favorable, with 43 out of 48 analysts rating NVDA as a Buy or Strong Buy [1]. The average 12-month price target for NVDA is around $181.27, with a low target of approximately $100 and a high target of $250 [1]. Goldman Sachs, for instance, raised its price target for Nvidia stock to $200 from $185, indicating an expected increase of over 11% in market value [5].

Nvidia's continued innovation in AI chip technology is a key factor in its strong market position. The company launched its Blackwell architecture in late 2024 and is rolling out the Blackwell Ultra update, with the Rubin architecture planned for 2026 [2]. These advancements are crucial for maintaining Nvidia's lead in the rapidly evolving AI market, which is projected to exceed $2 trillion in the coming years [2]. The Blackwell architecture is a significant growth driver, with analysts projecting Blackwell revenue for Q2 FY2026 to reach $20.4 billion [5]. The Blackwell Ultra GB300 GPU is noted for performing AI inference operations 50 times faster than its predecessor, the H100 [5].

Despite the positive sentiment, some investors are concerned about valuation, increasing competition from AMD and Intel, and regulatory scrutiny surrounding AI infrastructure [1]. U.S. restrictions on chip exports to China continue to be a headwind, with Nvidia taking a $4.5 billion charge in Q1 FY2026 due to these restrictions [5]. However, recent developments suggest that the U.S. government may grant export licenses in exchange for 15% of revenue generated in China [2].

In terms of upcoming events, Nvidia's Q2 FY2026 earnings report was scheduled for August 27, 2025 [5]. Analysts anticipated Q2 revenue of $45.9 billion, a 53% year-over-year increase, and earnings per share (EPS) of $1.00, a 47% year-over-year rise [5]. Forward guidance, with Q3 revenue predicted to reach approximately $52 billion, is closely watched by the market [5]. Additionally, Nvidia was set to present at the Goldman Sachs Communacopia + Technology Conference on September 8, 2025, where analysts would be looking for updates on key items such as the China market and the Rubin release timeline [2].

The company's P/E ratio of 55.73, while above its 10-year average of 52.87, is accompanied by a PEG ratio of 0.68, which suggests strong growth potential [5]. The demand from hyperscalers also presents significant opportunities for companies across the value chain [5].

Furthermore, there are indications of potential diversification in Nvidia's supply chain. UBS analysts believe that semiconductor testing firm Teradyne (TER) could become a second-source tester for Nvidia, especially with the increased complexity and longer test times associated with Nvidia's Blackwell chips compared to its predecessor, Hopper [3]. Even a modest 10% share of Nvidia's testing business could add several hundred million dollars in annual revenue for Teradyne [3].

In summary, major analysts in September 2025 view Nvidia as a strong investment due to its leadership in AI, robust financial performance, and continuous innovation. While some risks exist, the overall sentiment remains optimistic, with expectations of continued growth driven by the expanding AI market [1] [2] [5].