6 days ago
‘Take a Deep Breath,' Says Top Investor About Nvidia Stock
Seasons change, presidents are elected, and markets rise and fall – but Nvidia Corporation (NASDAQ:NVDA) continues to surpass expectations. Once again, the undisputed data center champion delivered top- and bottom-line beats with its Q1 Fiscal 2026 earnings report.
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Nvidia's revenues grew 69% year-over-year to reach $44.1 billion, nicely outpacing projections by a cool $810 million. The company's lucrative data center segment is a particular point of pride, and its revenues grew even faster by 73% year-over-year to $39 billion.
While the overall numbers continue to impress, it was not all sunshine and rainbows.
Revenue growth – while the envy of many – is slowing, and margins – while north of 60% – also declined. Of course, a fair amount of the shrinking margins can be blamed on a $4.5 billion charge related to H20 GPUs that the company was not allowed to ship to China.
The big question, however, is how the share price will react going forward. NVDA has been up-and-down quite a bit in 2025 – and all told its share price is roughly even year-to-date. That being said, since hitting a low point in early April, NVDA has risen over 40%.
While top investor Jonathan Weber applauds Nvidia's revenue growth, he is not so sure that now is the time to jump on board.
'With Nvidia trading at more than 30x forward earnings again, following huge gains over the last couple of weeks, it is not as attractive as it was during the spring selloff,' explains the 5-star investor, who is in the top 2% of TipRanks' stock pros.
While Weber deems that revenue growth is excellent indeed, it is not exactly 'extraordinary' for a company that has delivered growth rates up to 270% in the recent past. Moreover, it represents a declining trend.
'Momentum is thus not on Nvidia's side, which can be explained by factors such as tough comparisons and the law of large numbers — no company can grow at an extremely high growth rate forever, not even Nvidia,' adds Weber.
Acknowledging that NVDA has been quite 'volatile' this year, Weber still sees plenty of growth up ahead. Whether or not that justifies buying NVDA at present is another story, however.
'Overall, I do not think that NVDA is a bad investment right here at all, but I also do not believe that it's a must-own,' concludes Weber, who assigns NVDA a Hold (i.e. Neutral) rating. (To watch Jonathan Weber's track record, click here)
Wall Street, on the other hand, is 'all in' on Nvidia. With 33 Buys, 4 Holds, and 1 Sell, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $165.29 has an upside north of 20%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
