Jefferies analysts are flagging a notable rise in public concern about artificial intelligence in the United States and say that this sentiment is increasingly finding expression through state-level legislation. In a research note published Monday, the firm said Americans report higher levels of worry about AI than citizens of other major economies, and that a majority of U.S. respondents favor regulatory guardrails over unrestrained innovation.
According to the note, lawmakers have responded: more than 1,200 AI-related bills were introduced in 2025, and 874 of those remain active or are under consideration. Jefferies drew particular attention to moves by states that host the largest data center footprints, noting that all five of those states have proposed or enacted restrictions on data center construction.
Jefferies also highlighted the scope of the bills under discussion. Roughly 40% of active state measures focus on private-sector uses of AI, the analysts said, reflecting concern about corporate deployment of the technology as well as its societal impacts.
On the policy front at the federal level, the research note pointed to friction over efforts to limit state autonomy on AI rules. Jefferies said proposals for a federal moratorium on state AI regulation have met strong resistance, citing a 99-to-1 Senate vote to strip such language from legislation and the absence of federal preemption language in the final National Defense Authorization Act.
The firm also noted the existence of an executive order titled "Ensuring A National Policy Framework for Artificial Intelligence," published on December 11, 2025. Jefferies is offering clients further discussion on the topic, hosting a client webinar on AI outcomes on Wednesday, Feb. 25 at 10:00 AM.
Jefferies argued that tighter regulatory constraints on AI could cut both ways in the markets. The analysts said such measures might be bearish for large technology companies while potentially proving bullish for the broader market, though they did not quantify those effects in the note.
Nvidia, highlighted in the research note as a prominent player in AI semiconductors, remains central to the conversation. Jefferies noted Nvidia’s $4.65 trillion market capitalization and pointed to the company’s 65% revenue growth despite an environment of regulatory scrutiny. The firm referenced InvestingPro analysis that finds Nvidia’s stock still undervalued relative to its Fair Value, and reminded readers that the company is due to report earnings on February 25.
In recent analyst development, several firms have reiterated positive ratings on Nvidia ahead of its fiscal fourth-quarter report. Truist Securities has kept a Buy rating with a $275 price target and projects Nvidia revenue of $66.07 billion, representing 67% year-over-year growth, with earnings per share expected at $1.53. Cantor Fitzgerald reaffirmed an Overweight rating with a $400 price target and suggested fiscal year 2026 and 2027 EPS potential of $9.00 and $12.00, respectively. Morgan Stanley maintained an Overweight rating with a $250 price target.
KeyBanc also reiterated an Overweight rating and a $275 price target, expecting fourth-quarter revenue of $69 billion and first-quarter revenue guidance in the range of $74 billion to $75 billion. DA Davidson continued to hold a Buy rating with a $250 price target and emphasized Nvidia’s sustained growth trajectory exceeding 50%.
Jefferies’ note and the stream of analyst endorsements underscore two concurrent trends described by the firm: rising public and legislative scrutiny of AI in the United States, and persistent strong demand for AI-related products and services that is supporting bullish sentiment among equity analysts covering Nvidia.
Key developments summarized:
- Jefferies reports higher U.S. public concern about AI than in other major economies and a preference for regulatory guardrails.
- More than 1,200 AI bills were introduced in 2025, with 874 still active or under consideration.
- All five states with the largest number of data centers have introduced or enacted limits on data center construction.
- About 40% of active state bills focus on private-sector AI use.
- Nvidia, with a $4.65 trillion market cap and 65% revenue growth, is a focal point for analysts ahead of earnings due Feb. 25.
Implications for markets and sectors
- Technology sector: Potential regulatory constraints could weigh on large tech companies, according to Jefferies.
- Data center and infrastructure sector: State-level restrictions on construction could affect planning and capital allocation in data center-heavy states.
- Semiconductor and AI hardware: Strong demand and positive analyst coverage for firms like Nvidia indicate continued investor interest despite regulatory questions.