Nvidia Stock Seen Oversold After China Export Ruling Settles, Analysts Weigh In

Nvidia's stock has entered a period of technical recalibration after the market digesting the implications of revised export regulations targeting advanced AI chips in China. The clarification, which removed ambiguity around the scope of restricted shipments, has led to a stabilization in investor sentiment. Analysts now note that the stock may be oversold, citing a 18% pullback from its November 2025 peak amid a broader tech sector correction. The recent volatility reflects temporary market overreaction, according to several equity analysts who point to Nvidia's underlying fundamentals. The company reported Q3 2025 revenue of $26.9 billion, a 24% increase year-over-year, driven by strong demand in data center and AI infrastructure segments. Its gross margin stood at 77.5%, up from 75.1% in the prior year, highlighting pricing power and operational efficiency. Despite the selloff, Nvidia’s forward-looking guidance remains robust, with expected revenue of $29.5 billion in Q4 2025. The company continues to lead in the AI accelerator market, capturing over 90% of the global high-performance GPU segment. Analysts emphasize that even with adjusted export terms, China remains a critical growth market, accounting for nearly 30% of total revenue in the latest fiscal quarter. The broader market impact includes renewed interest in semiconductor equities, with the Philadelphia Semiconductor Index rising 5.2% over the past five trading days. Investors are reassessing risk-reward profiles, particularly for high-growth tech names. Nvidia’s current price-to-earnings ratio of 38.6x is elevated compared to the S&P 500 average but remains in line with peers in the AI infrastructure space.