Analysis: Overreliance on a Few Customers

NVIDIA’s Q2 (July 2025) earnings reveal that just two clients accounted for 39 % of total revenue—with one contributing 23 % and the other 16 % . The company also noted that large cloud service providers made up roughly 50 % of its data center revenue, a segment constituting 88 % of total revenue .

This level of client concentration poses legitimate revenue risk, as reliance on a few hyperscalers (e.g., Microsoft, Amazon, Google, Oracle) can lead to volatility if their capital expenditures shift or alter pacing.

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Price Reaction: Post-Earnings Dips & Analyst Response

Despite reporting 56 % year-over-year revenue growth to $46.7 billion and projecting Q3 revenue of $54 billion—slightly above consensus—NVIDIA’s stock experienced a drop (around 1–3 %) post-earnings due to concerns including data-center performance and China export uncertainties .

However, many analysts leveraged the dip as a buying opportunity, reaffirming or raising price targets:

J.P. Morgan: target → $215, citing AI infrastructure pipeline strength .

Benchmark: target → $220 .

Argus Research: reiterated Buy, target → $220 .

Morgan Stanley: raised target to $210 .

Susquehanna: target raised to $210 from $180 .

Investopedia: key technical support levels identified—$174, $159, and $150; overhead resistance near $183 .

Yahoo Finance: consensus remains “Strong Buy”; some targets as high as $250, implying ~40 % upside .

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Buying Opportunity: At What Price?

Given current sentiment and technical levels:

Level Significance

$174 Immediate support—mid-July peak; plausible near-term entry point.

$159 Secondary support—June highs; deeper dip entry.

$150 Stronger support—historical multiple peaks; opportunistic low-range entry.

$183 Resistance; a meaningful breakout could signal renewed momentum.

Analyst Targets: $210–$220 Reflect sector confidence and long-term upside expectations.

Bullish Outlier: $250 Represents highly optimistic scenario, with ~40 % potential from current ~$174.

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Is the Post-Earnings Dip an Overreaction or Correction?

Short-term volatility appears largely driven by macro/geopolitical factors—data-center execution nuances and uncertainties around China exports—not a weakness in core AI demand or product leadership. The fundamentals remain robust, with Blackwell ramping strongly and confidence in sustained global AI infrastructure build-out .

Thus, the dip arguably reflects a healthy market correction, rather than a fundamental alarm. Analysts across the board have maintained or increased positive ratings, highlighting enduring tailwinds.

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Summary Recommendation

The post-earnings dip appears to be a reasonable, sentiment-driven correction, not a derailment.

Support levels to watch for potential entries: $174, then $159, and $150.

Breakout above $183 could indicate renewed bullish momentum.

Analysts generally forecast $210–$220, with some aggressive targets up to $250, aligning with long-term AI growth narratives.

If your investment horizon is medium to long-term, cultivating positions in the $174–$150 range aligns with both technical signals and macro tailwinds.