Niu Niu Tong Sheng
Can NVIDIA be bought on dips? Latest insights from experts.
Is the once-popular chip leader still a favorite among investors? Is the strategy of buying on dips still effective? Amid internal and external challenges, what is the latest Target Price? This episode of Futubull will tell you.
Always in the spotlight of the AI industry, how did NVIDIA perform in this latest earnings report following the outbreak of the trade war?
Recent earnings show revenue growth continues to slow, but it is still above market expectations, reaching over 44 billion USD; data center revenue was below market expectations, with a year-on-year growth of 73%; impacted by the H20 chip ban and tariffs, the adjusted EPS was 0.81 USD, but excluding related impacts, it was 0.96 USD, higher than Analyst expectations.
NVIDIA's CEO Jensen Huang, known as the "Yellow Jacket", indicated that global demand for NVIDIA's AI infrastructure remains strong, with the AI supercomputer Blackwell NVL72 set to be fully operational; he also noted that China is one of the world's largest AI markets, and in response to the H20 chip export restrictions, the company is considering setting up attractive solutions for the Chinese market.
Looking at the performance of the stock king, it seems the market has responded positively, with the stock price soaring nearly 6% after the earnings report, rising back above the 140 USD level. Some analysts believe that NVIDIA's latest earnings have alleviated market concerns about the company's significant market share decline in China, while NVIDIA's second quarter revenue outlook is strong. Analysts expect that US export controls and a new round of tariff wars have not impacted the robust global AI chip demand, believing that AI-driven stocks can still outperform the market. Currently, NVIDIA's highest market Target Price is 210 USD.
Since the start of the reciprocal tariff war, the US government has periodically announced policies to restrict AI chip exports to China, causing NVIDIA to experience a period of stagnation, with its stock price once dropping below 90 USD. In face of the ban, NVIDIA is trying every means to carve out a path.
Earlier reports indicated that NVIDIA will launch a new downgraded AI chip for the mainland market to comply with U.S. government regulations, priced between $6,500 and $8,000, which is lower than the recently restricted H20 model priced at $10,000 to $12,000.
Is NVIDIA still a must-have stock in the portfolio? Does it have a chance to reach new highs again? Will the U.S.-China rivalry impact the company's stock price? Let's listen to the expert analysis.
I believe NVIDIA's performance in the first quarter exceeded market expectations. As a true shareholder, I am very satisfied. The only downside is that the outlook for the second quarter is worse than some market expectations. Due to the uncertainty regarding the H20 chip and transportation to China, this outlook is relatively conservative.
We need to closely monitor the future development of the Chinese market and whether chip supply can resume after the H20 chip halts supply. Whether Blackwell will be supplied could also affect if the situation improves, and second-quarter performance may exceed expectations.
There is a chance for new highs, but frankly speaking, it is not easy in the short term.
Currently, the market view on the seven giants of the Nasdaq has become conservative and differentiated. If it wants to reach new highs, it may face some difficulties. In addition, NVIDIA's stock price has accumulated significant gains recently, making it relatively difficult to break through existing levels in the short term.
This year, it is still important to pay attention to the performance in the second and third quarters to see if they can continue to exceed expectations. More importantly, focus on the overall market trend. Frankly, I might reduce my shareholding slightly around $140.
If simply asked whether to Hold NVIDIA, the answer is: yes.
Its gross margin is as high as 60-70%, and future revenue growth may reach 50%. Such business performance is indeed rare. For me, NVIDIA is still the king of stocks. If there is a monopoly in the market, combined with increasingly attractive valuations, I can hardly think of a reason not to hold this stock. In terms of value appreciation, if averaging in, I suggest buying around 120 to 130 dollars, as these price points will be more attractive.
As for Trump's policies, his decisions change frequently. If these policies do not target the chip industry or NVIDIA, they will not directly impact the fundamentals. If stock prices fall due to changes in market sentiment, I believe that would actually be a buying opportunity.
I can only say, in the face of policy demands, you have your strategy, and I have my way. It is impossible for NVIDIA to completely abandon the Chinese market, so new chips will emerge, which will become a potential highlight of performance.
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