Two bears remain on Nvidia after its strong results. What they are worried about
Although most analysts remain bullish on Nvidia following its latest strong earnings , other analysts are staying off to the sidelines when it comes to the chipmaker's stock. D.A. Davidson and HSBC reiterated their neutral and hold ratings, respectively, though they each raised their price targets on Nvidia shares. D.A. Davidson hiked its target to $135 from $120, which implies the stock won't do anything compared to Wednesday's close. HSBC increased its target by $5 to $125, implying the stock will fall more than 7% over the coming year. This comes as shares of the dominant artificial intelligence chipmaker rose more than 5% in early Thursday trading after net income and revenue in the latest quarter topped analyst estimates. Nvidia earned an adjusted 96 cents per share on revenue of $44.06 billion, while analysts surveyed by LSEG were looking for 93 cents per share on $43.31 billion in revenue. NVDA 1D mountain NVDA, 1-day The Jensen Huang-led company also called for about $45 billion in sales in the current quarter and said that its outlook would have been about $8 billion higher if it weren't for lost sales from an export restriction on its H20 chips to China. "It is our belief that the Street is under-accounting Chinese contribution to Nvidia revenue and that this topic represents the largest overhang on the stock, which will continue until we have an official position from the Trump administration that will give us resolution on the matter in one direction or the other," D.A. Davidson analyst Gil Luria wrote in a note in reaction to Nvidia's latest results. Nvidia estimates that the China accounts for about $50 billion in total addressable market , Luria noted. He added that the company is "handing the entire Chinese opportunity to homegrown manufactures such as Huawei" by not having a product that can serve what customers need. While HSBC analyst Frank Lee sees the potential for an AI graphics processing unit (GPU) comeback in China despite the recent H20 restriction, he's concerned that supply chain mismatches could continue to weigh on Nvidia even with an improving ramp up of its Blackwell chips. "We continue to believe that a growing supply chain mismatch between upstream AI GPU shipments and downstream ODM NVL server rack shipments is likely to increase into 2HFY26e despite improving downstream Blackwell rack yields," the analyst wrote in a Thursday note, referring to original design manufacturers and a specific Nvidia chip. "Hence, we still see potential for slower 2HFY26 GPU order momentum." Lee and Luria are two of only six analysts who are neutral on Nvidia, according to LSEG. Most are bullish, with 57 of 64 analysts on Wall Street rating Nvidia the equivalent of a buy.
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