Nvidia’s stock has surged 50% over the past two months, driven by easing trade tensions, strong demand for artificial intelligence, and a solid earnings report. Despite this rebound, investor Johnny Zhang remains cautious, citing ongoing concerns about the impact of US-China trade restrictions on Nvidia’s business.
The company reported record revenues of $44 billion in Q1 Fiscal 2026, with the data center segment growing at an impressive 73%. However, Zhang warns that the recovery is fragile and may not be sustainable without renewed visibility. He notes that Nvidia’s near-term growth path is uncertain due to ongoing uncertainty over AI spending trends in 2026.
Zhang specifically highlights the unresolved H20 issue, which resulted in a $4.5 billion hit during the last quarter. The company has acknowledged an expected $8 billion inventory write-off and may forfeit access to a $50 billion total addressable market in China if the restrictions remain in place.
In contrast, Wall Street is more optimistic, with 35 Buy, 4 Hold, and 1 Sell recommendations, giving Nvidia a Strong Buy consensus rating. The 12-month average price target implies an upside of over 20%. However, Zhang’s cautious view serves as a reminder that investors should not get too excited about the recent rally.
Source: https://www.tipranks.com/news/time-to-take-a-pause-says-investor-about-nvidia-stock